Univ.  of  Catlttiiiii 
Withdrawn 


/i:^ 
V' 


Digitized  by  the  Internet  Archive 

in  2007  with  funding  from 

IVIicrosoft  Corporation 


http://www.archive.org/details/crittendencommerOOgroeiala 


THE 


CRITTENDEN 

COMMERCIAL  ARITHMETIC 

Ain> 


DESIGNED  FOR  THE  USK  OK 


MERCHANTS,  BUSINESS  MEN, 

Academies,  and   Commercial    Colleges. 


BY 

JOHN    GROESBECK, 

CONSULTINO   ACCOUNTANT, 
PBIHCIPAL  OF  CHITTENDEN'S  PBILAOELPHIA  COUUEBCIAL  COLXEOE. 


ABRIDGED  EDITION. 


PHILADELPHIA: 
E.  C.  &  J.  BIDDLE,  508  MINOR  ST. 

186  7. 


"  Knowledge  Is  the  gnide  of  practice." 

"  If  a  man's  wits  be  wandering,  let  him  study  arithmetic."— Bacos. 

"  Wasliington  studied  the  intricate  forms  of  business.  He  copied 
out  bills  of  exchange,  notes  of  hand,  bills  of  sale,  receipts,  and  all 
the  varieties  of  the  class,  with  a  precision  and  elegance  that  were 
remarkable." 


Entered  according  to  Act  of  Congress,  in  the  jear  1867,  by 

JOHN   GROESBECK, 

in  the  Clerk's  Office  of  the  District  Court  of  the  United  States  for  the 
Eastern  District  of  PennsylTanla. 


->«ret 


8TER£0TTP£D  BY  MACEELLAR,  SMITHS  h  JOSDAJT, 

PHILADELPHIA. 

PEIKTED  BT  J.  B.  BODOEES. 


Second  iSdition. 


QA 


%(i>t 


PREFACE. 


The  object  of  this  book  is  to  impart  that  practical 
knowledge  which  is  daily  required  in  business  life. 

Business  is  based  upon  comprehensible  principles  and 
facts,  and  a  knowledge  of  them  will  promote  efficiency 
in  actual  transactions.  Practice  only  can  impart  skill 
in  application ;  but  practice  enlightened  by  knowledge 
sooner  acquires  proficiency,  and  saves  from  many  errors 
and  much  useless  drudgery. 

Among  the  qualifications  necessary  in  mercantile 
pursuits,  none  are  more  essential  than  a  thorough  ac- 
quaintance with  the  methods  of  calculation  employed, 
and  a  familiarity  with  the  various  forms  and  uses  of 
business  papers. 

The  calculations  presented  in  the  following  pages 
have  been  selected  as  the  best  in  actual  use  among 
business  men ;  and  several  of  them,  it  is  believed,  are 
now  published  for  the  first  time.  The  forms  are  those 
with  which  every  person  should  be  familiar,  and  in- 
clude a  greater  variety  than  has  yet  appeared  in  any 
one  collection.     They  are  accompanied  by  explanations 

447358 


4  PREFACE. 

which  will  be  of  service  to  those  of  limited  experience 
in  business  affairs. 

The  author  has  been  connected  for  the  last  ten  years 
with  Crittenden's  Commercial  College,  for  which  this 
manual  was  primarily  prepared ;  and,  in  addition  to  his 
knowledge  of  the  wants  of  the  student,  he  has  been 
frequently  consulted  by  merchants  and  others  upon 
difficult  questions  that  have  occurred  in  their  practice. 
These  difficulties  have  been  carefully  noted,  and  many 
of  their  intricacies  are  here  solved  and  explained.  The 
student  of  book-keeping  will  also  find  much  to  aid  him 
in  his  attempts  to  master  that  science. 

The  author  takes  this  opportunity  to  acknowledge 
his  indebtedness  to  numerous  friends  for  their  valua- 
ble assistance  in  the  preparation  of  the  work,  and  to 
render  them  his  sincere  thanks.  He  would  also  ex- 
press his  obligations  to  the  officers  of  numerous  banks 
and  mercantile  houses,  of  the  Mint,  the  Custom-House, 
and  of  various  public  and  private  establishments,  for 
the  opportunities  afforded  him  for  obtaining  reliable 
information  on  many  subjects  of  interest  and  value. 

In  the  fii'st  edition  of  a  work  of  this  nature,  though 
prepared  with  much  care,  perfection  is  not  to  be  ex- 
pected; and  the  author  will  esteem  it  a  special  favor 
if  business  men,  teachers,  and  others,  will  communicate 
any  suggestion,  new  or  improved  method  of  calcula- 
tion, or  any  useful  information  on  business  topics  that 
will  add  to  its  completeness. 


CONTENTS. 


COMMERCIAL   ARITHMETIC. 

Paqx 

Characteks  and  Abbreviations 8 

Methods  of  Addition 9 

Balancino  Accounts 14 

Fractions:  Rules  frequently  used , 15 

Contractions  in  Multiplication 18 

Contractions  in  Division 26 

Calculations  used  in  Particular  Branches  of  Business...  29 

Percentage 31 

Interest 33 

Computing  Time 34 

Accurate  Interest 88 

Interest  on  Government  Bonds 38 

Interest  in  England 89 

Problems  in  Interest 40 

True  Discount 41 

Banking 42 

Merchants'  and  Bankers'  Interest  Accounts 46 

Partial  Payments 62 

Average  op  Payments:  Abbreviated  Methods 66 

Average  op  Accounts              "                 •'      64 

Time  Table 70 

Monet,  Weights,  and  Measures 71 

Relative  Value  of  Gold  and  Silver 73 

United  States  Gold  and  Silver  Coin 75 

Money  of  Great  Britain 79 

Weights  and  Measures  of  Great  Britain 80 

French  Metric  System 81 

Foreign  Moneys  of  Account 84 

Foreign  Weights  and  Measures 85 

Comparative  Tables  of  Weights  and  Measures 85 

1*  & 


G  CONTENTS. 

Pass 

excuanqk  87 

Domestic  Exchange 88 

Foreign  Exchange 89 

Explanation  of  Exchange  Quotations 89 

Exchange  on  England 90 

Shipments  of  Specie 91 

Bankers'  Kules  for  computing  Sterling  Exchange 92 

Sterling  Table,  at  Premium 94 

Sterling  Table,  at  Par 95 

London  Course  of  Exchange 96 

Exchange  on  France 97 

Pkofit  and  Loss 98 

Premium  and  Discount 102 

Gold  and  Currency  Table 103 

Discounting  Bills  and  Invoices 104 

Advanced  Cost  of  Invoices 107 

Importers'  Advance  Table 108 

Quick  Sales  and  Small  Profits 114 

Mabking  Goods 115 

Annual  Peoduct  of  Gold  and  Silvee 116 

Dividends  and  Investments 117 

United  States  National  Debt 119 

Description  of  United  States  Bonds 121 

United  States  Treasury  Regulations 123 

National  Debts 124 

The  Stock  Exchange 125 

Stock  Quotations 127 

Stock  Interest  Table 133 

United  States  Bonds  in  Europe 134 

London  Quotations 135 

Paris  and  Frankfort  Quotations 136 

Life  Inteeest  Table 137 

The  Cental  System 138 

Gauging 139 

Grain  Measueb 140 

Storage 141 

Properties  of  Nuhbebs 142 

Miscellaneous  Rules 142 

Rules  of  Mensceation 143 


CONTENTS. 


BUSINESS   FORMS   AND   INFORMATION. 

Paob 

Business  Maxims 146 

Payments  and  Lkqal  Tender 147 

Receipts 150 

Book  Accounts 157 

Bills,  Invoices,  and  Statements 158 

Bills  of  Lading 164 

Account  Sales 167 

Accounts  Curkent 169 

Orders ►. 171 

Checks 172 

Checks  payable  in  the  future 174 

Certified  Checks 174 

Certificates  of  Deposit 175 

Transactions  with  Banks 175 

Rules  for  detecting  Counterfeit  Bank  Notes 177 

Description  of  National  Bank  Notes 178 

Description  of  Treasury  Notes,  or  Greenbacks 179 

Due-Bills 180 

Produce  Notes 181 

Promissory  Notes 181 

Negotiable  and  Non-Negotiable 182 

Presentment  and  Protest 185 

Accommodation  Notes 186 

Collateral  Notes 186 

Joint  and  Several  Notes 187 

Judgment  Notes 187 

Drafts  and  Bills  of  Exchange 192 

Indorsements 197 

Acceptances 200 

Agency 201 

Powers  of  Attorney 203 

Contracts 206 

Mercantile  Letters 207 

Instalment  Receipt 213 

English  Exchequer  Bill 213 

Certificate  of  Stock 214 

Certificate  of  Scrip  Dividend 215 

United  States  Five-Twenty  Bond 216 


CHARACTERS  AND  ABBREVIATIONS 

USED    IN    BUSINESS. 


@    At, 

%     Account. 

f       Cents. 

J6     Per  cent. 

y^     Number. 

1 1     One  and  one-quarter. 

1  *     One  and  one-balf. 

1»     One  and  thi-ee-quarters. 

15  doz.  j^j,  jY*5,  jy\.   Fifteen  doz., 

5  of  which  are  §12  per  doz.,  5 
doz.  @  $15,  and  5  doz.  at  $18 
per  doz. 

Ibbd.  Sugar.   1100  PO"^ds  gross 

1100  weight,    loo    lbs. 

1  ^'^  Qi'^lha    ^^'■®'  <"■  weight  of 

155  9^51b8-hhd.,  945  lbs.  net 

weight. 

42 1  The  numbers 

100     J     in  the  bracket 
138  yds.  ., 

•'        are  the   num- 

82  J  ber  of  yds.  in 

each  piece  respectively. 

10  doz.  I  @  2/-  f  @  3/6.     4  doz. 

No.  5  @  2  shillings  per  doz. ; 

6  doz.  No.  8  @  3«.  6d.  per  doz. 
7  X  9>  oi!"  7  by  9  in.      7  in.  wide, 

9  in.  long. 
<^  W.W.,  and  similar  characters 
and  letters,  are  placed  on  pack- 
ages to  designate  a  particular 
lot  or  shipment. 

(Goods  are  numbereil  and  marked,  that 
tbey  luay  be  distinguished  without  mi- 
aute  description.) 


4ps.28 


Acc't. 

Account. 

Adv. 

Adventure. 

Am't. 

Amount. 

Ass'd. 

Assorted. 

Bal. 

Balance. 

BbL 

Barrel. 

Blk. 

Black. 

Bo't, 

Bought. 

B.L., 

orB.  ofL. 

Bill  of  Lading. 

Co. 

Company. 

Cr. 

Creditor. 

Com. 

8 

Commission. 

Cons't. 

Dft. 

Disc't. 

Do.  or  ditto. 

Doz. 

Dr. 

£a. 

E.E. 

E.  &  O.E. 

Exch, 

Exps. 

Fig'd. 

Fol. 

Forw'd,  orfwd. 

fr. 

Fr. 

Fr't 

Guar. 

Gal. 

Hhds. 

Ins. 

Insol. 

Inst,  (instant) 

Invt. 

Int. 

Mdse. 

Mo. 

Net. 

No. 

Pay't. 

Pd. 

Pk'gs. 

Per,  or  pr. 

Per  cent. 

Prem. 

Prox.  (proximo) 

Ps. 

Rec'd. 

Ship't. 

S.S. 

Sunds. 

Ult.  (ultimo) 

Yds. 

Yr. 


Consignment. 

Draft. 

Discount. 

The  same. 

Dozen. 

Debtor. 

Each. 

Errors  excepted. 

Errors  and  omis- 
sions excepted. 

Exchange. 

Expenses. 

Figured. 

Folio. 

Forward. 

From. 

French. 

Freight. 

Guarantee. 

Gallon. 

Hogsheads. 

Insurance. 

Insolvency. 

This  month. 

Inventory. 

Interest. 

Merchandise. 

Month. 

Without  deduc- 
tion. 

Number. 

Payment. 

Paid. 

Packages. 

By. 

By  the  hundred. 

Premium. 

The  next  month. 

Pieces. 

Received. 

Shipment. 

Steamship. 

Sundries. 

The  last  month. 

Yards. 

Year. 


COMMERCIAL  ARITHMETIC. 


METHODS   OF  ADDITION. 

1.  Addition  constitutes  the  greater  part  of  all  the  calcu- 
lations of  business  and  common  life ;  and  the  ability  to  add 
with  rapidity  and  accuracy  is  of  more  practical  utility  than 
all  the  other  arithmetical  operations  combined.  This  ability, 
however,  can  be  readily  acquired  by  the  exercise  of  memory 
and  the  right  kind  of  practice.  A  regular  method  should  be 
pursued ;  encumbering  the  mind  with  amounts  to  be  carried 
from  one  operation  to  another  should  be  avoided ;  and  a  prac- 
tical familiarity  with  the  sums  of  combinations  of  numbers 
should  be  cultivated  as  much  as  possible.  Any  thing  which 
lessens  the  number  of  operations  to  be  performed  promotes 
rapidity.  By  closely  adhering  to  the  following  methods,  a 
short  time  only  will  be  required  for  acquiring  considerable 
proficiency. 

2.  In  writing  numbers,  care  should  be  taken  to  make  the 
figures  clear  and  plain,  so  that  a  3  will  not  be  mistaken  for 
a  5,  or  a  7  for  a  9 ;  and  also  that  the  figures  in  one  line  do 
not  run  into  those  in  the  line  below,  and  that  all  the  figures 
of  a  column  be  placed  directly  under  each  other. 

3.  Commence  at  the  foot  of  the  column  and  add  upward, 
and,  if  the  column  is  long,  always  set  down  the  carrying  figure. 
This  relieves  the  mind  from  apprehension  of  loss  of  time,  from 
being  compelled,  by  interruptions  which  often  occur  in  busi- 
ness, to  leave  the  work  when  nearly  through  the  addition  of 
several  columns  of  figures ;  and  then,  if  necessary,  any  column 
may  be  re-added  without  the  trouble  of  adding  the  preceding. 

Always  add  the  carrying  figure  to  the  next  column  on 
commencing. 

9 


10  METHODS    OF    ADDITION. 

4,  The  following  methods  of  retaining  the  carrying  figure 
are  adopted  by  most  accountants : — 

FIRST   METHOD.  SECOND    METHOD. 

$13213.30  .J^ 

25342.13  _i£ 

12468.31  27 

1143.13  27 

35321.34  20 

13476.21  23 

2113.13  10 


103077.55  103077.55 

2  2  22.1  I 

In  the  first  method,  the  figure  to  be  carried  is  written  small 
immediately  under  the  figure  to  which  it  belongs. 

In  the  second  method,  the  whole  result  of  each  column  is  set 
down  by  itself,  the  sum  of  each  column  being  written  one  place 
to  the  left  under  the  sum  of  the  column  preceding  it;  then, 
when  all  the  results  are  written,  the  right-hand  figures,  including 
all  the  footing  of  tbe  last  column,  will  give  the  total  result. 

5,  If  the  figures  are  not  set  down  in  regular  order  under 
each  other,  instead  of  trying  to  follow  the  column  upward, 
take  the  figure  which  is  the  same  number  of  places  from  the 
right  hand  as  the  figure  with  which  you  started,  not  regarding 
whether  it  is  below  tens  or  hundreds,  or  very  near  the  right- 
hand  figure,  or  at  some  distance  from  it.  For  instance,  if  you 
wish  to  add  a  column  of  hundreds  which  have  been  set  down 
irregularly,  instead  of  looking  for  the  next  figure  above,  look 
for  the  next  figure  which  is  three  places  from  the  right.  This 
method  will  save  time,  and  avoid  perplexity  and  uncertainty. 

6.  To  secure  accuracy,  the  addition  should  be  performed 
twice, — in  different  directions  :  this  gives  new  combinations, 
and,  if  there  has  been  a  mistake,  is  a  preventive  of  its  repeti- 
tion, which  is  likely  to  occur,  especially  when  the  mind  has 
been  too  long  engaged. 


METHODS    OF   ADDITION. 


11 


7,  If  the  columns  of  figures  are  long,  it  is  generally  better 
to  place  the  footings  on  a  separate  piece  of  paper  and  test 
their  correctness,  before  placing  them  in  ink  on  the  book ;  as 
mistakes  can  then  be  corrected  without  defacing  the  page  by 
erasures. 

8,  Familiari'ty  with  the  totals  of  combinations  should  be 
the  object  of  all  practice.  Counting  is  not  adding.  It  is 
quite  as  easy,  and  considerably  quicker,  to  say  at  once,  8  and 
7  are  15,  than  to  count  8,  9,  10,  11,  12,  &c.,  up  to  the  result 
15;  and  also  to  say,  3,  6,  10,  15,  than  to  say,  3  and  3  are  6, 
6  and  4  are  10  10  and  5  are  15. 


COUNTING-HOUSE  DRILL  TABLES. 
Drill  Table  No.  1. 


20 

20 

20 

20 

20 

20 

20 

20 

20 

20 

19 

19 

19 

19 

19 

19 

19 

19 

19 

19 

18 

18 

18 

18 

18 

18 

18- 

18 

18 

18 

17 

17 

17 

17 

17 

17 

17 

17 

17 

17 

16 

16 

16 

16 

16 

16 

16 

16 

16 

16 

15 

15 

15 

15 

15 

15 

15 

15 

15 

15 

14 

14 

14 

14 

14 

14 

14 

14 

14 

14 

13 

13 

13 

13 

13 

13 

13 

13 

13 

13 

12 

12 

12 

12 

12^ 

12 

12 

12 

12 

12 

11 

11 

11 

11 

11 

11 

11 

11 

11 

11 

10 

10 

10 

10 

10 

10 

10 

10 

10 

10 

9 

9 

9 

9 

9 

9 

9 

9 

9 

9 

8 

8 

8 

8 

8 

8 

8 

8 

8 

8 

7 

7 

7 

7- 

7 

7 

7 

7 

7 

7 

6 

6 

6 

6 

6 

6 

6 

& 

6 

6 

5 

5 

5 

5 

5 

5 

5 

5 

5 

5 

4 

4 

4 

4 

4 

4 

4 

4 

4 

4 

3 

3 

3 

3 

3 

3 

3 

3 

3 

3 

2 

2 

2 

2 

2 

2 

2 

2 

2 

2 

1 

1 

1 

1 

1 

1 

1 

1 

1 

1 

2 

3 

4 

5 

6 

1  / 

7 

8 

9 

10 

11 

i^i-r:b 

^I 

-iM 

tl(, 

2M1 

MH 

2)< 

■vVd 

:1  / 

Ov      SI 


"^     A     "V 


12 


METHODS   OF   ADDITION. 
Drill  Table  No.  2. 


20 

21 

22 

23 

24 

25 

26 

27 

28 

29 

30 

19 

20 

21 

22 

23 

24 

25 

26 

27 

28 

29 

18 

19 

20 

21 

22 

23 

24 

25 

26 

27 

28 

17 

18 

19 

20 

21 

22 

23 

24 

25 

26 

27 

16 

17 

18 

19 

20 

21 

22 

23 

24 

25 

26 

15 

16 

17 

18 

19 

2^ 

21 

22 

23 

24 

25 

14 

15 

16 

17 

18 

19 

20 

21 

22 

23 

24 

13 

14 

15 

16 

17 

18 

19 

20 

21 

22 

23 

12 

18 

14 

15 

16 

17 

18 

19 

20 

21 

22 

11 

12 

13 

14 

15 

16 

17 

18 

19 

20 

21 

10 

11 

12 

18 

14 

15 

16 

17 

18 

19 

20 

9 

10 

11 

12 

13 

14 

15 

16 

17 

18 

19 

8 

9 

10 

11 

12 

13 

14 

15 

16 

17 

18 

7 

8 

9 

10 

11 

12 

13 

14 

15 

16 

17 

6 

7 

8 

9 

10 

11 

12 

13 

14 

15 

16 

5 

6 

7 

8 

9 

10 

11 

12 

13 

14 

15 

4 

5 

6 

7 

8 

9 

10 

11 

12 

13 

14 

3 

4 

5 

6 

7 

8 

9 

10 

11 

12 

13 

2 

3 

4 

5 

6 

7 

8 

9 

10 

11 

12 

1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

11 

The  above  columns  should  be  added  until  the  addition  can 
be  easily  performed  and  without  hesitation. 

9.  In  the  following  columns,  add  all  the  figures  enclosed  in 
each  bracket  as  one  number,  and  name  only  results  in  the 
same  manner  as  when  the  figures  are  taken  separately.  Thus, 
in  adding  column  No.  4,  say  7,  11,  16,  &c. 

10.  When  a  figure  is  repeated  several  times,  count  the 
number  of  times  it  occurs,  and  multiply  by  the  figure.  Thus, 
if  the  figure  8  occurs  seven  times  in  a  column,  multiply  7  by 
8  for  the  result,  instead  of  adding  seven  8's  together, 

11.  When  three  figures  occur  in  regular  order, — as  4,  5, 
6,  or  6,  7,  8, — three  times  the  middle  figure  will  be  their 
Bum;  when  five  figures  occur,  take  five  times  the  middle 
figure.     When  there  are  four  figures  in  regular  order,  take 


METHODS    OF   ADDITION.  13 

twice  the  sum  of  the  extremes;    when  there  are  six,  taka 
three  times  the  sum  of  the  extremes. 


(1.) 

(2.) 

(3.) 

(4.) 

324 

678 

3-|3    4 
3[4|5 
4)6/3) 

lll-)2i 
l/2[3/ 
216J4) 
4/111/ 

235 

789 

143 

976 

421 

899 

31717/ 
7/8/4) 

312 

989 

2-»5    5 
3/1  [21 
5-)3>'3/ 

•3    214 
2-'6/5 

234 

988 

4l6\6l 
2/8/1 

343 

878 

423 
225 

673 

789 

8\3l7l 
2/9/3/ 

123 

968 

3iO    5\ 

4^515/ 
535/l\ 

2~|8    11 

0  414/ 

1    2[2l 
1.2)lJ 

334 

887 

212 

987 

324 

798 

2-|3)9i 
3/7i5) 
7\6-|5/ 
8/4/2 

123 

976 

431 

687 

2U[4l 
43l33i 

212 

997 

4419  13959  72    1    2 


ADDITION   OF   SEVERAL  COLUMNS  AT  ONE   OPERATION. 

12.  To  add  two  or  more  columns  at  one  operation. 
To  the  lower  number  add  first  the  units  of  the  next  num- 
ber above,  then  the  tens,  then  the  hundreds  j  and  so  continue. 

23  OPERATION. 

31       22  +  5  =  27,  27  -f  10  =  37 

24  37  +  4=41,41+20=  61 
61  +  1  =  62,  62  +  30  =  92 
92  +  3  =  95,  95  +  20  =  115  Ans. 


15 
22 


115 


234  OPERATION. 

112  322  +  3  =  325  +  20  =  345  +  400=  745 

423  745  +  2  =  747  +  10  =  757  +  100=  857 

3^  857  +  4  =  861  +  30  =  891  +  200  =  1091  Ans. 


1091 


14  BALANCINa  ACCOUNTS. 

Bractice  will  enable  a  person  to  add  amounts  of  two  or  more 
figures  at  one  operation:  thus,  22  +  15  =  37,  37  -f-  24  =  61,  61  + 
81  =;  92,  92  4-  23  =  115  Ans.  As  soon  as  the  combinations  become 
familiar,  addition  by  this  method  can  be  performed  without  diffi- 
culty ;  but,  for  ordinary  purposes,  one  column  at  a  time  is  sufficient. 
In  Ledger  accounts,  when  the  last  two  or  three  columns  are  not  all 
filled,  they  may  be  added  at  one  operation  with  advantage. 

13.  Very  long  columns  of  figures  are  sometimes  added  in 
the  following  manner  : — 

FIRST   METHOD. 

247 
362 
228 
436 


1273 
128 
326 
121 

1848 
121 
316 
405 


SECOND 

METHOD. 

247 

362 

228 

436 

1273 

128 

326 

121 

575 

121 

316 

405 

842 

2690  Ans. 

2690  Ans. 

BALAXCING  ACCOUNTS. 
14.  It  is  frequently  of  advantage  to  the  accountant  to  find 
the  difierence  between  two  sums  by  addition,  instead  of  by 
subtraction.  For  example,  if  he  wishes  to  find  the  differ- 
ence between  2427  and  1235,  instead  of  taking  the  trouble 
of  placing  the  smaller  number  under  the  larger,  he  will  add, 
mentally,  to  1235  a  sum  tbat  will  make  the  whole  equal  to 
2427,  writing  the  figures  as  he  proceeds  under  1235. 

2427  1235 

1 1 92 — ^balance. 

When  both  sides  of  an  account  contain  several  amounts,  first  add 
the  larger  side  in  the  usual  manner ;  then  commence  at  the  top  of  the 
columns,  on  the  smaller  side  of  the  account,  and  add  doicntcards,  inserting 
the  necessari/  figures  to  make  the  required  balance.  Thus,  to  find  the 
balance  of  the  following  account : 


BALANCING   ACCOUNTS. 


15 


Dr. 

V.I.  A 

ndrews. 

Or. 

1867. 

Jan.    3. 
»     10. 
"     24. 

To  Mdse. 
l(        11 

884.00 
72.00 
43.00 

8199.00 

1867. 

Jan.  10.  By  Cash, 

Balance, 

845.00 
67.00 
8  7.0  0 

First,  add  the  larger  side;  then  say,  5-}- 7  =  12,  and  7,  the  figure 
required  to  make  the  balance,  =19.  Set  down  7  and  carry  1.  1+4 
-|-  6=:11,  and  the  remaining  figure  of  the  balance  :=  19.  To  test 
the  accuracy  of  the  work,  add  the  whole  of  the  smaller  side,  and 
include  the  balance. 


Dr. 


EXAMPLE   II. 

George  L.  Burtis. 


Or. 


1867. 

1867. 

Feb.    9. 

To  Mdse. 

8187.37 

Feb.  15.  By  Cash, 

8150.00 

"     26. 

((      (( 

37.42 

Mar.  10.    "       « 

437.75 

Mar.  4. 

((       (1 

260.38 

Apr.  9. 

((         u 

720.16 

May  6. 

i(       il 

132.50 

EXAMPLE   in. 


Dr. 

Thomas  Wallace. 

Or. 

1867. 

1867. 

Jan.    9. 

To  Cash, 

8375.00 

Jan.    2. 

By  Mdse.     8375.00 

"     15. 

"   Mdse. 

270.50 

Feb.   2. 

"  Cash,        200.00 

«     17. 

u        « 

320.75 

"    15. 

«       «           275.50 

«     26. 

((         u 

175.23 

«    18. 

"  Bills  Pay.  116.25 

Mar.  3. 

u       a 

315.85 

FRACTIONS. 

RULES   FREQUENTLY   USED. 

15.  To  multiply  whole  numbers  by  fractions. 
Rule. — Multiply  hy  the  numerator,  and  divide  the  product 
by  the  denominator. 

EXAMPLES. 

1.  Multiply  464  by  f . 

464  X  3  =  1392 ;  1392  ^  4  =  348  Ana. 


16 


FRACTIONS. 


2.  Multiply  12672  by  18f . 
12672 
181 

4)38016— product  by  3. 

9504 — product  by  f . 
101376  "  "  8. 
12672  "        «   1. 

237600— product  by  18|. 

16.  To  multiply  a  fraction  by  a  fraction. 
Rule. — Multiiply  the  numerators  together  for  a  new  nume- 
rator, and  the  denominators  together  for  a  new  denominator. 


1.  Multiply  I  by  4. 
2X4  =  8 
5  X  7  =  35      Ans. 


^\- 


Multiply  I  by 


_6_ 

1 1* 

1  8  It       3 
2?  ?• 

7  «     12 
T7         ?T- 


17.  To  divide  by  a  fraction. 

Rule. — Invert  the  divisor,  and  multiply  as  in  theprevwtu 
rvl^es. 

1. 


Divide  f  by  |. 

2. 

Divide  ^%  by  |. 

1  inverted  =  ^ 

3. 

"        \    "  ^• 

5X4  =  20 

4. 

"        \    "  f 

9  X  3  =  27      Ans.  ff 

18.  To  divide  by  a  mixed  number. 

Rule. — Multiply  the  lohole  number  in  the  divisor  by  the 
denominator  of  the  fraction,  and  to  the  product  add  th^  nu- 
merator. Multiply  the  dividend  by  the  denominator  of  the 
fraction  ;  then  divide  as  usual.  The  remainder,  if  any,  must 
he  divided  by  the  denominator  of  the  fraction  to  obtain  the 
true  remainder. 


1.  Divide  480  by  5J. 
5  J    480 
2  2 

11)  960" 

87A 


2.  Divide  2675  by  18f . 

3.  «   18992  by  133i. 

4.  "   425  by  31i. 

5.  »   341  by  7i. 


CONTRACTIONS 


MULTIPLICATION  AND  DIVISION. 


The  following  contractions  are  useful  for  imparting  readi- 
ness and  dexterity  in  the  mechanical  processes  of  multipli- 
cation and  division.  If  thoroughly  mastered,  they  will  be 
found  to  be  of  great  service,  and  will"  amply  repay  the  time 
and  labor  expended  in  acquiring  them.  They  include,  in  a 
condensed  form,  nearly  all  of  practical  value  that  has  yet 
been  published,  together  with  some  methods  which,  it  is  be- 
lieved, now  appear  in  print  for  the  first  time. 

The  labor  of  making  out  bills  and  invoices,  entering  sales, 
taking  account  of  stock,  and  many  similar  operations,  may 
be  much  lessened  by  their  use ;  as  extensions  can  be  made 
without  writing  out  the  operations,  while  the  liability  to  mis- 
takes is  diminished,  because  there  is  less  labor,  and  fewer 
figures  are  employed. 

17 


18 


CONTRACTIONS   IN   MULTIPLICATION. 


CONTRACTIONS  IN  MULTIPLICATION. 

19.  To  multiply  two  numbers  of  two  places  each  when  the 
units  or  tens  are  alike. 

Rule. — Multiply  units  by  units;  then,  IF  the  units  are 
ALIKE,  multiply  the  sum  of  the  tens  hy  the  units,  and  the  ten» 
by  tens.  If  the  tens  are  alike,  multiply  the  sum  of  tJie 
units  by  the  tens,  and  the  tens  by  tens;  in  all  cases  carrying 
as  usual. 


EXAMPLES. 

1.  Multiply  34  by  54. 

34        4X4  =  16 

54         5  +  3=    8X4  =  32  4-1  (carried)  =  33 
J^         3  X  5  :f=  15  +  3  (carried)  =  18 

2.  Multiply  45  by  43. 

45        5  X  3  =  15 


43 


1935 


5  +  3=    8X4  =  32  +  1  (carried)  =  33 
4  X  4  =  16  +  3  (carried)  =  19 


10.  Multiply  36  by  34. 


11. 

64  ' 

'  64 

12. 

35  ' 

'  34 

13. 

72  ' 

'  73 

14. 

37  ' 

'  35 

15. 

45  ' 

'  45 

16. 

66  ' 

'  66 

3.  Multiply  44  by  64. 

4.  "  32  "  72. 

5.  "  28  "  18. 

6.  "  45  "  35. 

7.  "  123  "  33. 

8.  "  65  "  55. 

9.  «  124  «  34. 

45  X  45  =  5  X  4  with  the  square  of  5  annexed. 
75  X  75  =  8  X  7         "  "         5 

20.  This  rule  includes  the  multiplication  of  two  numbers  whose 
units  or  tens  are  ones,  the  squaring  of  numbers,  multiplying  when 
the  units  are  alike  and  the  sum  of  the  tens  is  ten,  &c. 

As  it  is  capable  of  several  hundred  applications,  its  value  is  ob- 
vious. A  little  practice  will  give  the  ability  to  write  the  products 
without  setting  down  the  figures  to  be  multiplied.  It  is  believed 
that  this  is  the  first  time  the  above  rule  has  appeared  in  print. 


CONTEACTIONS   IN   MULTIPLICATION.  19 

21.  To  multiply  by  numbers,  the  half,  third,  or  fourth  of 
which  is  a  convenient  multiplier. 

Rule. — Multiply  the  half  of  one  number  hy  twice  the  other, 
or  one-third  of  one  number  by  three  times  the  other,  dec. 

EXAMPLES.  j  l> 

1.  Multiply  28  by  16.  ^^  ^/^"^ 

28  X  2  =  56  /C'"*' 

16 -4-2=8  56X8  =  448.  '^ 

2.  Multiply  35  by  27. 

27  -4-  3  =     9 

35  X  3  =  105        105  X  9  =  945. 

22.  This  rule  is  well  adapted  for  mental  operations,  and  is  espe- 
cially applicable  to  numbers  which  can  easily  be  changed  to  tens, 
hundreds,  &c. 


21  X  30  =  630. 

Multiply  48  by  13^  =  16  by  40. 
"        36  "  22^. 

24  "  23f 
"      136  "  45. 

28  «  174. 

56  X  4  =  224,  28  -4-  4  =  7,  224  X  7  =  1568. 

23.  To  multiply  when  one  part  of  the  multiplier  is  a  factor 
or  multiple  of  the  other. 

Rule. — Multiply  by  the  smaller  part  of  the  multiplier; 
then  multiply  the  product  so  obtained  by  the  number  which 
shows  how  many  times  this  smaller  part  is  contained  in  the 
other,  placing  the  right-hand  figure  of  the  second  product 
under  the  right-hand  figure  of  that  part  of  the  multiplier  to 
which  it  belongs. 


3.  Multiply  42  by  15. 

42  --  2  =  21 
15  X  2  =  30 

4. 
5. 
6. 
7. 
8. 

Multiply  76  by  15. 
"      134  "  35. 
"        43  "  24. 

"      182  "  18. 
"        56  "   28. 

9. 
10. 
11. 
12. 
13. 

20 


CONTRACTIONS   IN    MULTIPLICATION. 


EXAMPLES. 
1.  Multiply  285  by  164. 


16h-4  =  4 


285 
164 


1140  product  by  4. 
4560    4  times  the  product 
^;^     by  4  =  285X16. 


5.  Multiply  4267  by  142. 


2.  Multiply  654  by  436. 

654 
436 

2616      product  by  4. 

23544  9  times  the  prod, 
i^^      by4  =  654X36. 

3.  Multiply  364  by  126. 

4.  "        387  "  279. 


14.  The  custom-house  value  of  a  franc  is  18.6  cents :  what 
is  an  invoice  amounting  to  32165  francs  worth  in  United 
States  currency  ? 

15.  What  is  an  invoice  of  cassimeres,  valued  at  X3225, 
worth,  the  custom-house  value  of  a  pound  sterling  being 
$4.84? 


6. 

276  ' 

'  357 

7. 

812  ' 

'  426 

8. 

373  « 

'   369 

9. 

235  ' 

'   424 

10. 

644  ' 

'  321 

11. 

342  ' 

'  535 

12.  ' 

822  ' 

'  642 

13. 

545  ' 

'  927 

24.  To  multiply  by  any  number  ending  with  9. 
Rule. — Multiply  hy  the  next  higher  nuviher,  and  subtract 
the  multiplicand. 


EXAMPLES. 


1.  Multiply  42  by  39. 

39  +  1=40 

42X40  =  1680 

1680  — 42  =  1638  Ans. 

2.  Multiply  45  by  99. 


3.  Multiply  432  by  59. 

4.  "        125   "  699. 

5.  "        175  "   290. 

6.  "        325  "  999. 

7.  "        424  <'  9:\. 

8.  "  36  "  6§|. 


CONTRACTIONS   IN   MULTIPLICATION.  21 

25.  To  multiply  by  two  figures  at  once. 

Rule  I. — Multiply  both  figures  in  the  multiplier  hy  each 
figure  in  the  multiplicand  separately.     Or, 

Rule  II. — Multiply  units  by  units;  then  to  the  product  of 
each  succeeding  figure  in  the  multiplicand  by  the  units  of  the 
multiplier,  add  the  product  of  the  figure  preceding  it  by  the 
tens,  and  carry  as  usual.  Multiply  the  last  figure  of  the  mul- 
tiplicand by  the  tens  of  the  multiplier. 

Note. — When  largo  numbers  are  to  be  multiplied,  for  the  purpose  of 
remembering  which  figure  has  been  used,  place  a  dot  over  each  figure  of 
tho  multiplicand  as  soon  as  multiplied. 

EXAMPLE   UNDER   RULE   I. 

Multiply  3265  by  24. 

3265    24  X  5  =  120,  24  X  6  =  144  -f  12  (carried) 
24     =  156. 

24  X  2  =  48  +  15  (carried)  =  63,  24  X  3  + 
6  (carried)  =  78. 


78360 


EXAMPLES   UNDER  RULE  IL 

1.  Multiply  34  by  43. 

43  3X4  =  12,  write  2. 

34  4x4  =  16  +  1  (carried)  =  17  to  carry. 

7T^  3  X  3  =  9  +  17         "        =26,  write  6. 

4x3  =  12  +  2         "       =14. 

2.  Multiply  212121  by  23. 

212121  2         12         1          2         1 

23  23 


4878783 


2X2 


2X3 
1X2 


1X3 

2X2 


2X31X32X3 
1X22X21X2 


1X3 


Ans.  4         8         7         8         7         8        3 

With  a  little  practice,  the  products  may  be  written  without  the 
trouble  of  writing  the  numbers  under  each  other,  which  often,  as 
in  making  out  invoices,  entering  sales,  &c.,  effects  a  considerable 
saving  of  time.  When  thoroughly  understood,  the  liability  to  mis- 
takes is  less  than  by  the  ordinary  method,  because  there  are  fewer 
operations. 


09 


CONTRACTIONS   IN    MULTIPLICATION. 


3.  Multiply  42  by  14.  I  5. 

4.  "        36   "  16.  I  6. 

Find   the  answers  to  the  following 
numbers  as  they  stand  : — 


Multiply  63  by  31. 
"        26   "  51. 

by  multiplying   the 


Ans.  $3.36. 


24  yards  calico  @  14c.  per  yd. 

52  lbs.  sugar  @  17c.  per  lb.  " 

36  bus.  oats  @  51c.  per  bus.  " 

48  bus.  corn  @  63c.  per  bus.  " 

362  yds.  carpeting  @  77c.  per  yd.  *' 

28  lbs.  tea  @  74c.  per  lb.  " 

72  yds.  muslin  @  42c.  per  yd.  " 

34  gross  pens  @  85c.  per  gross.  " 

26.  To  multiply  when  the  multiplier  is  a  convenient  or 
aliquot  part  of  10,  100,  1000,  &c. 

KuLE. — Annex  as  many  ciphers  to  the  multiplicand  as 
there  are  in  the  number  of  which  the  multiplier  is  an  aliquot 
part;  then 

Take  such  part  of  the  multiplicand  so  increased,  as  the  mul- 
tiplier is  of  the  number  of  which  it  is  an  aliquot  part. 

EXAMPLES, 

1.  Multiply  424  by  25. 

25  =  1  of  100.    42400  -f-  4  =  10600. 

2.  Multiply  4936  by  12J. 

12i=iofl00.     493600-^8^:61700. 


AlIQtTOT  PAETS 

OF  10. 

2>   1 

-^3  — ¥ 
SI  —  1 
**5  — If 

12  —  1 

■•^3  ff 

13  1 

X^  7 

11  1 

At  —  a 


n= 


ALIQUOT  PABTS 
OF  100. 


fil  1 

"i  —  T8 
or  I  of  I 

°3  — T5 

or  ^  of  ^ 

12^  =  1 
14|  =  4 

161  =  ^ 
25  =i 
331=4 


18|  = 

311  = 
371  = 
621  = 
66|  = 
75  = 
831  = 
874  = 


ALIQUOT  PART? 

OF  1000. 

3 
1% 

125   =i 
250   =4 

1 

3 

4 

1 

3331=^ 

375    =1 
625   =1 
833^  =-- 1 

875   =1 

27.  This  table  can  also  be  used  to  show  the  value  of  an  aliquot  part. 
For  example,  f  of  1000  equal  625;  f  of  100  =  83}. 


CONTRACTIONS    IN    MULTIPLICATION. 


23 


3. 

Multiply  48  by  2  J. 

9. 

Multiply  320  by  6i 

4. 

18   "  Sh 

10. 

840  "  Sh 

5. 

"      384   "  12J. 

11. 

225  "   14|. 

6. 

"      486    "  16f. 

12. 

»        648  "  125. 

7. 

«      165   "  33J. 

13. 

726  "  166f. 

8. 

«        96   «'  If 

14. 

"      2456  "  37  i. 

15.  What  is  the  cost  of  12^  yds.  cloth  @  18|c.  per  yd.  ? 
12J  =i;  changing  18f  to  a  decimal,  18.75  -r- 8  =  $2.34f . 

28.  Aliquot   parts  may  be  conveniently  used  when  the 
multiplier  is  but  little  more  or  less  than  an  aliquot  part. 
EXAMPLES. 


2.  Multiply  36  by  18f . 

3.  "        48  "   13J. 

4.  "        33  "  35. 

5.  "        36  "  34i. 


1.  Multiply  24  by  17?. 

17f  =  16?  +  l;  16?  =  *. 
24  X  161  =  400 
24  X  1  =   ^ 

424  Ans. 

29.  To  multiply  mixed  numbers  in  which  the  fractions 
are  alike. 

Rule. —  To  the  product  of  the  whole  numbers  add  that  part 
of  their  sum  which  is  expressed  hy  the  fraction^  and  the  pro- 
duct of  the  fraction  multiplied  hy  itself. 
Note. — Perform  the  operation  mentally  whenever  it  can  be  done. 

EXAMPLES. 

1.  Multiply  6J  by  4J. 

6  X  4  =  24 
J  of  (6  +  4)  =   5 

^Xi  =  _i     29iAn3. 

8.  Multiply  12J  by  3J. 
i  of  15  =  31 

*  +  TV  =  il-     Ans.39l|. 

9.  Multiply  16f  by  9?. 
10.         "  8J  "  6J. 

80.  When  the  whole  numbers  are  alike,  and  the  fraction  is  one- 
half,  the  half  of  the  sum  of  the  whole  numbers  equals  one  of  the 
numbers,  and  the  operation  can  be  shortened  by  multiplying  the 
whole  number  by  itself  plus  1,  and  annexing  \: — 
4JX4J-5X4+^--=2UJ. 


2. 

Multiply  8i  by  4i-. 

3. 

6J  "  9J. 

4. 

8J  "  4i 

5. 

7i  "  84. 

6. 

4|  "  4|. 

7. 

6i  "  6f. 

24 


CONTRACTIONS   IN    MULTIPLICATION. 


81.  This  rule  will  apply  to  whole  numbers,  by  taking  the  units 
as  so  many  parts  of  ten,  and  the  tens  as  so  many  parts  of  one  hun- 
dred. Thus,  to  multiply  45  by  45 :  40  equals  4  tens,  5  equals  one- 
half  of  ten,  and  one-fourth  of  one  hundred  equals  25 ;  then,  5X4^ 
20,  to  which  annex  |  of  100,  that  is,  25,  and  we  have  2025. 


11.  Multiply  65  by  65. 

12.  "        35  "  35. 


12.  Multiply  650  by  650. 

13.  "        450  "  450. 


32.  To  multiply  mixed  numbers  when  the  whole  numbers 
are  alike. 

Rule. —  To  the  product  of  tJie  whole  numbers  add  that  part 
of  one  of  them  which  is  expressed  hy  the  sum  of  the  fractions, 
and  the  product  of  the  fractions. 


EXAMPLES. 

■»♦ 

1.  Multiply  12^  by  12^. 

2. 

Multiply  8|  by  8^. 

12X12  =  144 
1  of  12  =  9 

3. 

4. 
5. 

9i  "  9t'3- 
8i  "  8-,»,. 

63 "  ^■ 

3X5=5 

6. 

7. 

121   -   12«. 
74  '«  7|. 
8^   «  8|. 

144  +  9  +  1  =  153^  Ans. 

8. 

Note. —  When  the  aum  of  the  fractions  equals  one,  and  the  whole  numbers 
are  alike,  that  part  of  one  of  them  which  is  expressed  by  the  sum  of  the 
fractions  is  equal  to  itself,  and  the  operation  can  be  shortened  by  multiplying 
the  whole  number  by  itself  plus  1,  and  annexing  the  product  of  the  fractions. 


f  of  8  =  8 

iX|  =  A  72^  Ans. 

15.  Multiply  4.25  by  4.75. 
4.25=41         4.75  =  4| 
5X4  =  20      |X|  =  T'g 


Thus 

,  to  multiply  8\  by  8|  :— 

|  +  i  =  f,orl; 

9X8  =  72 

10. 

Multiply  4|  by  41. 

11. 

"      12'    "   12| 

12. 

((        71    «  74 

13. 

"        61   "   61- 

14. 

"        81   "  8f. 

20 

=  .1875 

20.1875  Ans 


33.  To  multiply  any  mixed  numbers. 

Rule. — Multiply  hy  the  fraction  of  the  multiplier,  then  hy 
the  whole  number ; — or,  Reduce  both  multiplier  and  multipli- 
cand to  improper  fractions^  and  then  proceed  as  in  multiplica' 
tion  of  fractions. 


CONTEACTIONS   IN    MULTIPLICATION.  25 


EXAMPLE. 


Multiply  6J  by  9i. 

9i  Or,  ej^'g^         9^  = 


3'prod.  by^.  ,9  V  19  — 361  — G0> 

3      «      ofJby9.  3  X  2  — -s   —^^a- 

54       "       "  6  <'  9. 
Ans.  60^. 

34.  To  multiply  by  numbers  which  are  from  1  to  12  less 
than  100,  1000,  &c. 

Rule. — Multiply  the  multiplicand  hy  tJie  difference  heticeen 
the  multiplier  and  100,  1000,  &c.,  and  subtract  the  product 
from  the  product  of  the  multiplicaHd  hy  100,  1000,  &c. 


EXAMPLES. 


1.  Multiply  35  by  98. 

98  =  100  —  2 
35  X  2  =  70 
35X100  =  3500 
3500— 70  =  3430  Ans. 

2.  Multiply  125  by  198. 

3.  "        205  "  96. 

4.  "        375  '*  89. 


5.  Multiply  215  by  98. 

Note. — When  from  1  to  12  more 
than  100,  add  the  product  of  the 
multiplicand  by  the  unit  figure,  after 
annexing  the  required  number  of 
ciphers. 

325  X 102=  32500  -f-  650  =  331 50 
Ans. 

6.  Multiply  475  by  101, 
103,  106. 


35.  To  multiply  two  numbers  which  are  equidistant  from 
any  number  which  may  be  squared  mentally. 

KuLE. — From  the  square  of  the  mean  number  subtract  the 
square  of  the  difference  between  the  mean  number  and  one  of 
the  given  numbers. 

EXAMPLES. 

1.  Multiply  98  by  102. 

100,  the  mean  number  between  98  and  102; 
Square  of  100  =  10000 ;  4  =  the  square  of  the  difference ; 
10000— 4  =  9996  Ans. 


26  CONTRACTIONS   IN   DIVISION. 


2.  Multiply  32  by  28. 

Square  of  30  =  900 ; 
900  —  4  =  896. 

3.  Multiply  41  by  39. 


4.  Multiply  88  by  92. 

5.  "        37  "  43. 
G.  "        46  "  34. 

7.  "        73  »  87. 

8.  "        41  »  59. 


When  the  sum  of  the  units  equals  ten,  and  one  of  the  tens  is  an  odd 
number  and  the  other  is  an  even  number,  the  numbers  are  eguidistatil 
from  some  number  of  tens,  which  is  obtained  by  taking  half  of  the 
sum  of  the  tens  plus  1. 

9.  Multiply  45  by  95.         |      10.  Multiply  35  by  65. 

36.  This  rule  includes  multiplying  by  numbers  of  two  places  each, 
icken  the  sum  of  the  units  is  10  and  the  difference  of  the  tens  is  1 ;  by 
numbers  the  sum  of  whose  units  equals  10,  and  whose  tens  are  alike ; 
mixed  numbers,  in  which  the  sum  of  the  fractions  equals  1,  and  the 
difference  of  the  whole  numbers  is  1. 


11.  Multiply  12  J  by  11  J. 

Ans.  1431. 

12.  Multiply  7 J  by  6t. 


13.  Multiply  4i  by  3|. 

14.  "        61   "   59. 

15.  "      126  «  114. 


37.  To  square  any  number  of  9's  instantaneously. 

Rule. — Beginning  at  the  left,  write  9  as  many  times  less  1 
as  there  are  9's  in  the  given  number,  an  8,  as  many  ciphers  as 
9's,  and  1. 

The  square  of999=  998001;  square  of  9999  =  99980001. 
The  square  of  any  number  of  3's  equals  ^  the  square  of  the 
same  number  of  9's. 


CONTRACTIONS   IN   DIVISION. 

38.  Multiplying  or  dividing  both  the  dividend  and  divisor  by  the 
same  number  does  not  alter  the  quotient. 

39.  To  divide  by  any  number  ending  in  5,  or  an  aliquot 
part  of  10,  or  any  number  of  tens. 

Rule. — Multiply  both  the  dividend  and  divisor  by  any 
number  that  icill  make  the  divisor  equal  some  number  of  tens 
or  hundreds;  then  divide  as  usual. 

Note. — If  there  it  a  remainder,  it  must  be  divided  by  the  number  by  which 
the  iliiideiid  wan  midliplled,  to  obtain  the  true  remainder. 


CONTRACTIONS   IN   DIVISION. 


27 


EXAMPLES. 


1.  Divide  4480  by  35. 

35  X  2  =  70 
4480  X  2  =  8960 
8960  -f-  70  =  128  Ans. 

2.  Divide  3644900  by  175. 

175  X  4  =  700 
3644900X4  =  14579600 
14579600-^-700  =  20828 


Ans. 


Divide  6785  by  45. 

"       3725  '-  75. 

"       628750  by  55. 

«    2628000   "  225, 
by  22^,  17^,  231,17^, 

181,  or  18|. 


40.  To  divide  by  an  aliquot  part  of  100,  1000,  &c. 

Rule. — Multiply  the  dividend  hy  the  number  which  ex- 
presses how  many  times  the  given  divisor  is  contained  in  100, 
1000,  &c.,  and  point  off  as  many  places  as  there  are  ciphers 
in  the  number  divided  by  the  given  divisor. 


EXAMPLES. 


1.  Divide  485  by  25. 
100 -f- 25  =  4 

485  X  4  =  19.40  Ans. 

2.  Divide  8480  by  12^. 
100--12J=8 
8480X8  =  678.40  Ans. 

3.  Divide  69600  by  16f . 


4.  Divide  4762000  by  33^. 

5.  "      2875        "  62J. 
62i  =  |of  100 

2875 
8 


5)23000 


46.00  Ans. 


62^  =  I  or  ig  :  therefore,  if  the  number  is  multiplied  by 
4  and  the  product  by  4,  and  three  places  be  pointed  off,  the 
same  result  will  be  obtained. 

41.  To  divide  by  numbers  greater  or  less  than  10  or  100 
by  an  aliquot  part 

Rule. — Find  what  part  of  the  given  divisor  the  difference 
heticeen  it  and  10  or  100  equals  ;  then 

Increase  the  dividend  by  this  aliquot  part  of  itself,  if  the 
divisor  is  less,  but  diminish  it  if  the  divisor  is  more  than  10 
or  100,  and  point  off  as  many  decimals  as  there  are  ciphers 
in  the  number  of  tens  taken. 


28 


CONTRACTIONS   IN   DIVISION. 


EXAMPLES. 


1.  Divide  31G5  by  7J. 

10  — 7J=2J 

2,V  =  iof  7J 
To  3165 
Add  1055  =  J  of  3165 

Ans.  422. 


2.  Divide  6345  by  15. 

15  =  10  +  5 

5  =  iof  15 

From  6345 

Subtract  2115  =i  of  6345 

423.0  Ans.  423. 


7.  Divide  18992  by  1331. 

8.  "         7462  «'    16G^. 

9.  «        4265 
10.       "        3256  «  87A 


116i. 


422.0 

3.  Divide  18764  by  66f . 

4.  "         2465  "   75. 

5.  "      42736  «   83|. 

6.  "      37254  "  88|. 

42.  To  divide  by  any  number  but  little  less  than  100, 
1000,  &c. 

Rule. —  Cut  off  from  the  right  of  the  dividend  as  many 
figures  as  the  divisor  contains. 

Multiply  the  figures  on  the  left  of  the  point  hy  the  difference 
between  the  divisor  and  100,  1000,  &c.  Point  off  as  many 
figures  as  there  are  in  the  divisor,  and  xcrite  the  product  under 
ilie  dividend. 

Multiply  the  part  of  this  product  on  the  left  of  the  point,  if 
any,  hy  the  same  multiplier,  cut  off,  and  set  down  as  before. 

Continue  so  until  the  number  of  figures  in  the  product  do  not 
exceed  those  in  the  divisor ;  then  add  the  several  results,  and 
to  the  sum  add  the  product  of  the  number  of  units  carried  to 
the  left  of  the  pointy  if  any,  by  the  number  used  as  a  mul- 
tiplier. 

Tlie  part  on  the  left  of  the  point  wiU  be  the  quotient;  that  on 

the  right,  the  remainder. 

If  the  remainder  exceeds  the  divisor,  carry  one  to  the  quotient,  and  takt 
the  difference  between  the  divisor  and  remainder  for  the  true  remainder. 

EXAMPLES. 

1.  Divide  5532  by  98. 


98)55 

32 

100  —  98  =  2 

1 

10 

55X2  =  110 

2 

1X2  =  2 

56 

44 

56^1  Ans. 

SPECIAL    CONTRACTIONS. 


29 


2.  Divide  485  by  95. 
95)4  85 
20 


05 
5,  the  product  of  1  (the  number  carried 
IQ         across  the  point)  by  5. 


3.  Divide  11201  by  98. 

4.  "    3267  "  97. 

Ans.  33«f . 


5.  Divide  4268  by  93. 

6.  "   4264  "  88. 

7.  "   2487  "  91. 


CALCULATIONS  USED  IN   PARTICULAR 
BRANCHES   OF  BUSINESS. 

45.  To  find  the  value  of  tons  and  hundred-weight  without 
the  use  of  fractions. 

Rule. — Multiply  the  number  of  hundred-weight  li/  5,  and 
annex  the  product  to  the  tons,  as  so  many  hundredths  of  tons; 
then  multiply  hy  the  yiven  price  per  ton,  and  point  off  two 
decimals. 

EXAMPLES. 

1.  What  is  the  cost  of  18  tons,  17  cwt.  coal  @  $4  per  ton  ? 
17X5  =  85         18.85X4  =  75.40.     Ans.  $75.40. 
What  is  the  cost  of  85  tons,  15  cwt.  hay  at  §12  per  ton  ? 
What  is  the  cost  of  48  tons,  17  cwt.  coal,  at  §0.50  per 


2. 

3. 

ton? 


44.  To  find  the  value  of  shillings  and  pence  in  the  deci- 
mals of  a  pound  sterling. 

Rule. — Multiply  the  shillings  hy  5,  and  call  (he  product 
hitndredths. 

Mxdtiply  the  pence  hy  4i,  and  call  the  product  thousandths. 
Tfi^  sum  of  these  tico  values  will  he  the  decimal  required. 
3* 


30  SPECIAL   CONTRACTIONS. 

EXAMPLES. 

1.  Reduce  12s.  Gd.  to  the  decimal  of  a  pound. 

12X5   =.60 
6  X  4i  =  .025 

.625 

2.  Reduce  £187  IS.*.  3d.  to  the  decimal  of  a  pound. 

13X5   =.65 
3  X  4i  =  .0125 

.6625        Ans.  £187.6625. 

45.  To  change  aunes  to  yards. 

Note.— An  aune  is  a  French  measure,  equal  to  IJ  yards. 

Rule. — Annex  a  cipher,  and  divide  hy  8. 

EXAMPLES. 

1.  In  484  aunes,  how  many  yards? 

4840  ---  8  =  605  Ans. 

2.  In  3848  aunes,  how  many  yards?  In  1265?  In  1847? 

Note. — 1|^=:J,  or  '^^.  This  rule  can  easily  be  applied  to  nu- 
merous other  calculations.  The  contents  of  boards  \\  inches  thick, 
&c.,  may  be  computed  in  this  manner;  the  selling  price  of  goods  in 
order  to  gain  '2b  ft,  on  the  cost;  and  others. 

3.  What  is  the  selling  price  of  goods,  which  cost  64  cents 
per  yard,  to  gain  25%  ? 

640  --  8  =  80  64 

16  =  25%  of  64 

80 

46.  To  find  how  many  gallons  of  linseed  oil  in  a  given 
number  of  pounds,  at  7^  lbs.  per  gallon. 

Rule. — Add  one-third  of  the  number  of  pounds  to  itself  and 
2wint  off  one  decimal. 

examples. 

1.  How  many  gallons  in  675  lbs.  ? 

675 

225  =  i  of  675 

90.0  Ans.  90  gals. 

2.  In  1846  lbs.  how  many  gallons?  in  675,  in  339  lbs.  ? 


PERCENTAGE,  31 

47.  To  find  the  number  of  piculs  in  a  given  number  of 
pounds. 

Note. — A  picul  is  a  Chinese  weight  of  133J  lbs. 

llULE. — Subtract  one-quarter  of  the  given  number  of  pounds, 
and  po hit  off  two  decimals. 

EXAMPLES. 

1.  In  18992  lbs.  tea,  how  many  piculs? 
18992 
4748  =  i  of  18992 

142.44  Ans.  142.44. 

/- 

PERCENTAGE. 

48.  Percentage  is  a  method  of  computing  by  means  of  a 
fraction  whose  denominator  is  100. 

The  term  per  cent,  is  an  abbreviation  of  the  Latin  per 
centum,  which  signifies  bi/  the  hundred. 

49.  The  Rate  per  cent,  is  the  number  of  hundredths. 
Thus,  8  per  cent,  is  eight-hundredths,  and  may  be  expressed 
7«,,  or  .08,  or  8%. 

Per  cent,  is  simply  the  proportion  of  a  hundred,  and  is  not  any 
of  the  denominations  of  Federal  money  :  10  per  cent,  is  not  10  cents, 
nor  10  dollars,  but  yg^^;  10  per  cent,  of  §50  =  $5;  10  per  cent,  of 
85  bbls.  =  8J  bbls. 

Percentage  is  used  in  most  commercial  calculations,  such  as  In- 
terest, Commission,  Insurance,  Profit  and  Loss,  &c. 

50.  Case  I. — To  find  the  percentage  of  any  number  or 
quantity,  the  rate  per  cent,  being  given. 

Rule. — Multiply  the  given  number  by  the  rate  per  xeiif., 
and  divide  by  100  (i.e.  point  off  two  decimals). 

EXAMPLES. 

1.  What  is  8%  of  S640? 

640  X  8  =  5120.  Ans.  $51.20 

8  %  of  640  =  -j-8j5  of  640  =  Vd'o"  =  51.20. 


82  PERCENTAGE. 

The  percentage  on  sterling  money  and  denominate  numbers  is 
found  after  reducing  the  numbers  to  the  lowest  denomination  given, 
or  to  the  decimal  of  the  highest,  and  then  proceeding  as  in  simple 
numbers. 

2.  What  is  6  per  cent,  of  £15  9«.  6d.  ? 

By  Art.  44.  9«.  Bd.  =  £.475 

15.475  X  6  =  .92850 
20 

18.57000 
12 


6.84000         Ans.  18«.  Sj%\d. 

£15  9s.  6d.  =  37Ud.        3714  X  6  =  22284 
222.84f/.  =  18s.  Gj%%d. 

51.  Case  II. — To  find  what  rate  per  cent,  one  number  is 
of  another. 

Rule. — Annex  tico  ciphers  to  the  percentage,  and  divide 
hy  the  number  on  which  the  percentage  is  reckoned. 
Example. — What  per  cent,  of  40  is  8  ? 
800  --  40  =  20.        8  =  ,8g  of  40 ;  /j,  of  100  =  20. 

62.  Case  III. — To  find  a  number  when  the  value  of  a  cer- 
tain per  cent,  of  it  is  known. 

Rule. — Annex  two  ciphers  to  th^ percentage,  and  divide  hy 
the  rate  per  cent. 

Example. — 42  is  25%  of  what  number? 
4200  H-  25  =  168. 

53.  Case  IV. — To  find  what  number  is  a  certain  per  cent. 
more  or  less  than  a  given  number. 

Rule. — When  the  given  number  is  more  than  the  required 
number,  annex  two  cijihers  to  the  given  number,  and  divide  by 
100  PLUS  the  rate  per  cent. 

When  the  given  number  is  less  than  the  required  number, 
annex  two  ciphers  to  the  given  number,  and  divide  by  100  LESS 
the  rate  per  cent 


INTEREST.  33 

EXAMPLES. 

1.  What  amount  of  gold,  at  a  premium  of  25  per  cent., 
can  I  buy  for  ^720  iu  currency  ? 

100  +  25  =  125 ;     72000  -^  125  =  576.         Ans.  $576. 

2.  Purchased  merchandise  and  sold  it  for  $1680,  thereby 
losing  20  per  cent.     What  did  the  merchandise  cost? 

100  —  20  =  80;     168000^80  =  2100.       Ans.  $2100. 

INTEREST. 

54.  Interest  is  compensation  for  the  use  of  money  or 
value.  The  sum  for  the  use  of  which  interest  is  paid  is 
called  the  Principal;  the  sum  of  the  Principal  and  Interest 
is  called  the  Amount. 

55.  Legal  Interest  is  the  rate  established  by  law.  Usury 
is  interest  greater  than  the  legal  rate,  and  is  prohibited  by 
law.  In  some  States,  however,  parties  are  allowed  to  give 
and  receive  higher  than  legal  rates  by  special  contract.  All 
interest  in  ancient  times  was  called  usury.  >, 

56.  When  no  rate  is  mentioned,  the  legal  rate  is  alwkys 
understood.  Debts  of  all  kinds  draw  interest  from  the  time 
they  become  due,  but  not  before,  unless  specified.  Interest 
on  interest  remaining  unpaid  is  considered  illegal. 

57.  The  legal  rate  in  most  of  the  States,  and  on  debts  due 
the  United  States,  is  6^  per  annum.  In  New  York,  Michi- 
gan, South  Carolina,  Wisconsin,  Georgia,  and  Minnesota,  it 
is  7%;  in  Alabama  and  Texas,  8^;  Louisiana,  5^;  Cali- 
fornia and  Kansas,  10^;  and  in  Oregon,  122%. 

58.  The  legal  rate  in  England  and  France  is  5%;  in 
Canada,  Nova  Scotia,  and  Ireland,  6%. 

59.  In  Pennsylvania,  commission  merchants  and  agents  of 
parties  not  residing  in  the  State  are  authorized  to  enter  into 
an  agreement  to  pay  a  rate  not  exceeding  7  ^  on  balances  of 
money  remaining  in  their  hands,  and  to  receive  a  rate  not 
exceeding  that  amount,  for  advances  of  money  made  by  them 

C 


84  COMPUTING   TIME. 

on  consignments  from  persons  living  and  transacting  busi- 
ness bejond  the  limits  of  the  State. 

60.  In  Arkansas,  Illinois,  Iowa,  Michigan,  Mississippi,  Mis- 
souri, and  Tennessee,  interest  as  high  as  10%  can  be  taken  by 
special  contract;  in  Louisiana  and  Florida,  as  high  as  8%; 
in  Minnesota,  Texas,  and  Wisconsin,  as  high  as  12  % ;  in 
California,  any  per  cent. 

61.  Most  merchants  settle  their  accounts  semi-annually,  or 
oftencr,  and  the  interest  is  calculated  for  days.  The  interest 
on  Notes  and  Bonds  which  have  8ome  time  to  run,  is  gene- 
rally calculated  for  months  and  days. 


COMPUTING  TIME. 

62.  To  find  the  time  between  two  dates,  omit  the  day  of 
the  date  and  include  the  day  of  maturity. 

For  instance,  if  Tuesday  is  the  tenth  day  of  the  month,  to 
the  next  Tuesday,  the  seventeenth,  is  seven  days;  but  if  both 
Tuesdays  are  included,  we  have  eight  days,  if  both  are 
omitted,  only  six  days. 

63.  When  months  are  mentioned,  they  are  construed  to 
mean  calendar  months,  by  which  is  meant  the  time  from  one 
day  in  one  month  to  the  same  day  in  another  month. 

Notes  or  securities  falling  due  on  the  30th  or  31st  of  any 
month  which  has  only  28,  29,  or  80  days  in  it,  are  considered 
to  be  nominally  due  on  the  last  day  of  the  month,  and  there- 
fore legally  due  on  the  3d  of  the  following  month.  For  in- 
stance, a  note  dated  November  30th,  payable  3  months  after 
date,  falls  due  on  the  last  day  of  February,  and  three  days  of 
grace  make  it  payable  on  March  3d.  Less  than  a  month  is 
reckoned  at  the  rate  of  30  days  to  the  month. 

64.  When  it  is  required  to  find  the  difierence  between  two 
dates  in  years,  months,  and  days,  it  may  be  done  as  in  Sub- 
traction of  Co:npound  Numbers. 


COMPUTING   TIME.  35 

EXAMPLE. 

What  is  the  difference  in  time  between  July  15th,  1865, 
and  September  19th,  1862? 

The  earlier  date  is  placed  under  the  later,  and  the  numbers 
of  the  months  are  written  instead  of  their  names. 

Tr.       mo.    da. 

1865    7     15 
1862     9     19 


2     9     26 


65.  As  the  number  of  days  in  the  different  months  varies, 

counting  time  by  days  is  the  only  exact  method,  when  the 

dates  are  less  than  a  year  apart. 

From  Jan.   1,  1867,  to  July  1,  1867,  is  6  mos.,  containing  181  days. 
"      Sept  1,     "       "  Mar.  1,  1868,  "  6    "  "  182     " 

"      Apr.    1,     "      "  Oct.    1,  1S67,  "  6    "  "  183     " 

"      Mar.  1,     "      "  Sept.  1,     "       "  6    "  "  184    " 

66.  The  number  of  days  between  two  given  dates  may  be 
found  as  in  the  following  example  : — 

What  is  the  number  of  days  between  January  5th  and 
July  3d? 


In  Jan. 

26  days 

"    Feb. 

28     " 

Add  the  number  of  days  in  January 

"    Mar. 

31     « 

after  the  6th  to  the  days  in  the 

"    Apr. 

30     " 

intervening  months,  and  the  three 

«    May 

31     " 

days  in  July. 

«    June 

30     " 

«    July 

3     " 

Total, 

179 

67.  Or,  call  each  month  30  days,  and  correct  by  adding  one 
for  every  month  intervening  which  contains  31  days,  and 
subtract  two  for  February,  except  in  leap-years;  then  but  1. 
In  the  example  already  given,  from  Jan.  5th  to  July  3d, 
there  are  five  whole  months,  two  of  which  contain  31  days, 
and  one,  February,  contains  but  28.  They  consequently 
average  30  days  each,  making  150,  which,  with  26  days  in 
January  and  3  days  in  July,  make  a  total  of  179. 

Time  Tables  will  be  found  useful  for  ascertaining  the  time 
between  d.ff^jrcnt  dates. 


36  COMPUTING   TIME. 

68.  It  is  sometimes  desirable  to  know  for  what  time  to 
draw  a  note  so  that  it  will  not  fall  due  on  a  Sunday  or  a 
holiday.  After  finding  the  number  of  days,  divide  by  7  to 
obtain  the  number  of  weeks  and  days,  then  count  the  odd 
days  from  the  day  of  the  week  on  which  the  note  is  dated. 
In  the  example  given,  179  days  =  25  weeks  and  4  days.  If 
January  5th  was  on  Monday,  then  July  3d  will  be  four  days 
from  Monday,  or  on  Thursday. 

69.  The  following  may  be  useful  to  those  who  have  fre- 
quent occasion  to  draw  notes  : — 

33  days  =  4  weeks  and  5  days,  63  days  =  9  weeks,  93  days  =  13 
weeks  and  2  days:  therefore, 

A  note  at  thirty  days  will  fall  due  five  days  later  than  the  day  of 
the  week  on  which  it  was  given. 

A  note  at  sixty  days  will  fall  due  on  the  same  day  of  the  week. 

A  note  at  ninety  days  will  fall  due  two  days  later. 

70.  It  is  customary  among  business  men,  in  reckoning  in- 
terest, to  consider  the  year  as  consisting  of  12  months  of  30 
days  each,  or  360  days.  As  there  are  365  days  in  a  year, 
this  gives  -gl^,  or  ,,.'3,  too  much.  The  difference  is  so  small, 
however,  that  in  ordinary  transactions  it  is  not  noticed.  The 
mercantile  custom  has  in  many  cases  been  sanctioned  by  law. 
In  New  York,  the  law  on  this  subject  (Rev.  Stat.  vol.  ii. 
p.  182)  reads  as  follows: — ■ 

"  For  the  purpose  of  calculating  interest,  a  month  shall  be  con- 
sidered the  twelfth  part  of  a  year,  and  as  consisting  of  thirty  days; 
and  interest  for  any  number  of  days  less  than  a  month  shall  be  esti- 
mated by  the  proportion  which  such  number  of  days  shall  bear  to 
thirty." 

INTEREST   AT    6   PER   CENT. 

71.  The  interest  on  §1  for  one  year  or 

12  months  =  6  cents. 
2       "       =1  cent. 
1  month  or  80  days      =   J  cent,  or  5  mills. 
6     "         =  1  mill. 

Therefore,  one-half  the  number  of  months  equals  the  interest  on 
1  dollar,  in  cents;  and  one-sixth  the  number  of  days  equals  the  in- 
terest on  1  dollar,  in  mills. 


INTEREST   AT    SIX    PER    CENT.  37 

72.  To  compute  interest  at  6  per  cent. 

If  the  time  is  in  months  or  years. 

Rule. — Multiply  the  principal  hy  one-half  the  number  of 
months,  and  point  off  two  decimals.  If  there  are  cents  in  the 
principal,  point  off  four  decimals;  the  remaining  figures  will 
he  the  interest,  in  dollars. 

If  the  time  is  in  days. 

Rule  I. — Multiply  the  principal  hy  one-sixth  the  numher 
of  days,  and  in  the  product  point  off  three  decimals.  If  there 
are  cents  in  the  principal,  point  off  five;  the  remaining  figures 
win.  he  ike  interest,  in  dollars. 

Or,  to  avoid  multiplying  by  fractions : — 

Rule  II. — Multiply  the  principal  hy  the  numher  of  days, 
and  divide  the  product  hy  6 ;  then  point  off  as  in  the  pyre- 
ceding  rule. 

73.  When  the  time  is  less  than  1  month,  the  cents  in  the  principal  may- 
be disregarded ;  when  less  than  2  months,  all  under  50c. ;  when  less 
than  3  months,  all  under  33c. 

examples. 

1.  What  is  the  interest  on  S1875  for  7  months  ? 

1875  X  3i  =  6562}  Ans.  665.62J. 

2.  What  is  the  interest  on  §4250  for  24  days  ? 

4250  X  4  =  17000  Ans.  U7. 

3.  What  is  the  interest  on  S5650.37  for  27  days  ? 

4.  «  "  $7250.45    "   Smos.  29days? 

5.  "  «  $364.50   "  lyr.4mos.12da.? 

6.  «  "  $1575.25    «  9  mos.  17  days  ? 

The  notes,  accounts-current,  interest  accounts,  in  another  part  of 
the  book,  will  afford  additional  examples  for  practice. 

74.  To  compute  interest  at  any  given  rate. 

Rule  I. — Find  the  interest  at  six  per  cent.,  and  divide  it 
hy  6 ;  the  quotient  will  he  the  interest  at  one  per  cent.;  then 
multiply  this  interest  hy  the  given  rate.     Or, 

4 


447358 


u 


88 


INTEREST   ON   U.  S.   BONDS. 


Rule  H. — Find  the  interest  at  six  per  cent.,  and  add  to  it 
or  subtract  from  it  in  the  same  ratio  as  tlie  given  rate  is 
greater  or  less  than  6. 


For  1%  add 
"    ^%    » 
"    9^    "    ^,  or 

divide  by  4  instead  of  6. 

•'  \0fo  take  ^^  by  annexing  one 

cipher   and    diriding 

by  6. 

"  12fo  multiply  by  2,  or  divide 

by  3  instead  of  6. 


For  3^  take  \,  or  divide  by  12 
instead  of  6. 

**  4^  subtr.  \,  or  divide  by  9 
instead  of  G. 

"    ^%     "      i. 

"    5%       "      |. 

"    H%    "     tV 


EXAMPLES. 


1.  Find  the  interest  on  SI 285.      for  3.3  days         at    7%. 

2.  "  "  84825.60   "  90     '«  "9%. 

3.  «  «  82726.35   "  3mos.l8  da.  "  lO^J,. 


ACCURATE  INTEREST. 

75.  To  compute  accurate  interest. 

Rule. — Find  the  interest  as  in  the  preceding  rules,  and 

subtract  from  it  -^^part  of  itself  ;  in  leap-year  subtract  g'y. 

Note. — -^  equals  a  little  less  than  1^  cents  for  each  dollar  of  interest. 

Or,  Multiply  the  interest  on  the  given  sum  for  1  year  by  the  num- 
ber of  days  for  which  interest  is  required,  and  divide  by  365.  The 
quotient  will  be  the  required  interest.  This  rule  is  equivalent  to 
the  following  formula : — 

The    number    of "|         fThe  int.  on  thp"!       (     The 
days  for  which  >-!:-<     given  sum  for  v  :  ■<  required 
int.  is  required  j         (.1  year  J       (_     int. 


Ab365 


H 


INTEREST  ON  GOVERNMENT  BONDS. 

76.  By  the  ordinary  method  of  computing  interest  at  6  % , 
the  interest  on  86000  is  81  per  day,  and  the  principal  will 
double  itself  in  200  months.  The  difference  to  the  United 
States  Government  between  paying  interest  at  the  rate  of 
360  days  to  the  year,  and  paying  accurate  interest,  or  at  the 
rate  of  365  days  to  the  year,  is  85  per  year  for  every  86000- 


INTEREST  IN  ENGLAND.  39 

The  Five-Twenty  Loan  is  over  $950,000,000,  and  the  interest 
on  it  more  than  $165,000  per  day.  The  difference,  on  this 
loan,  between  usual  interest  and  accurate  interest,  is  nearly 
$2250  per  day.  The  formula  under  the  preceding  rule  is 
employed  in  the  Treasury  Department  at  Washington. 

EXAMPLES. 

1.  What  is  the  interest  on  U.  S.  Bonds  of  $15000  from 
May  1st  to  July  17th,  at  6%  ? 

From  May  1st  to  July  17th  =  77  days. 
Int.  on  $15000  for  1  year  =  $900  ;      900  X  77  =  69300. 
69300  -4-  365  =  $189.86  Ans. 

2.  What  is  the  interest  on  a  Five-Twenty  U.  S.  Bond  of 
$1000  from  Nov.  1st  to  Feb.  3d  ? 

3.  What  is  the  interest  on  a  Ten-Forty  U.  S.  Bond  of  $1000, 
bearing  5  ^  interest,  from  March  1st  to  Aug.  10th  ? 

INTEREST  IN  ENGLAND. 

77,  The  legal  rate  of  interest  in  England  is  5  per  cent., 
and  parts  of  a  year  are  counted  in  days  at  the  rate  of  365 
days  to  the  year.     To  compute  English  interest : — • 

Rule. — Reduce  the  shillings  and  pence,  if  any,  to  the  deci- 
mal or  fraction  of  a  pound  (see  Art.  Jf.jf)  ;   th&n — 

For  Years — Multiply  the  principal  by  the  number  of  years, 
and  the  product  will  he  the  interest,  in  shillings. 

For  Months — Multiply  the  principal  by  the  number  of 
months,  and  tJie  product  toill  he  the  interest,  in  pence. 

For  Days — 3Iultiply  the  principal  by  the  number  of  days, 
divide  the  product  by  73,  and  point  off  two  decimals:  the  quo- 
tient Icill  he  the  interest,  in  the  denomination  of  the  principal. 

Example. — What  is  the  interest  on  £425  for  1  year,  3 
months,  and  10  days,  at  5%  ? 

425."?.,  interest  for  1  year. 
106.25     "         "    3  months. 
11.64     "         "  10  days. 

542.89s.  =  £27  2s.  lid.  Ans. 


JWr^kM. 


40  PROBLEMS  IN  INTEREST. 

PROBLEMS  IN  INTEREST. 

78.  To  find  the  principal,  wlien  the  time,  rate  per  cent., 
and  interest  are  given. 

KuLE. — Divide  the  given  interest  hy  the  interest  on  one 
DOLLAR  for  the  given  rate  and  time. 

EXAMPLES. 

1.  What  sum  invested  at  Q%  for  one  year  will  produce 
$360  ? 

Interest  on  $1,  for  1  year,  at  6%  =  .06. 

.06)360.00  =  6000  Ans.  86000. 

2.  What  principal  in  2  years  at  Y%  will  give  $3556  ? 

3.  "  "  3     "     6  mos.  at  6%  will  give  $470? 

4.  "  "  6     "     8     "    "  8%       "         $540? 

5.  "  "  3     "     4     "    "  6%       "         $540? 

6.  What  must  I  pay  for  real  estate,  producing  $750  per 
year,  that  I  may  receive  6^  on  my  investment? 

7.  What  must  I  pay  for  stocks,  paying  a  dividend  of  $345 
yearly,  that  I  may  gain  9  ^  ? 

8.  What  reduction  must  I  obtain  that  I  may  purchase 
stocks  of  the  par  value  of  $8000,  paying  6  %  dividend  yearly, 
to  receive  8  %  on  what  I  invest  ? 

79.  To  find  the  rate  per  cent.,  when  the  principal,  time, 
and  interest  are  given. 

Rule. — Divide  the  given  interest  hy  the  interest  on  the  prin- 
cip>al  at  ONE  per  cent. 

EXAMPLES. 

1.  A  house  which  cost  $4800  rents,  above  expenses,  for 
$264  per  year.  What  per  cent,  does  it  pay  on  the  invest- 
ment? 

Interest  on  4800  at  1%  =  48. 

264^48==5i  Ans.  5J%. 

2.  If  I  invest  $3650  for  1  year,  2  months,  and  receive 
$480,  what  rate  do  I  receive  per  year  ? 

80.  To  find  the  time,  when  the  principal,  rate,  and  interest 
are  given. 


TRUE    DISCOUNT.  41 

Rule. — Divide  the  given  intereat  hy  the  interest  on  the  prin- 
cipal for  ONE  day;  the  quotient  will  he  the  required  time,  in 
days. 

EXAMPLES. 


1.  In  what 
at  6  %  ? 

time  will  $5530.42  produce 

$30.42 

inter( 

Interest  on  85530.42  for  1  day  = 
.921)30.42(334-. 
2763 

.921+ 

2790 

2763 

Ans.  33 

days. 

2.  How  long  will  it  take  a  sum  of  money  to  double  itself 
at  6  %  simple  interest  ?     At  7  ^  ?     At  8%  ? 

3.  Invested  $6000  at  6%,  for  which  I  received  $750.42. 
How  long  was  it  invested  ? 

81.  To  find  the  principal,  when  the  time,  rate  per  cent.,  and 
amount  are  given. 

Rule. — Divide  the  given  amount  by  the  amount  of  one 
DOLLAR  /or  the  given  rate  and  time. 

EXAMPLES. 

1.  What  principal  will  amount  to  $1120  in  2  years,  at 

6%? 

Amount  of  $1  for  2  years  at  6%  =  $1.12. 

1120  -T-  1.12  ==  1000  Ans.  $1000. 

2.  What  principal  will  amount  to  $1500  in  1  year,  3  mos., 
at5%?     At7%? 

TRUE  DISCOUNT. 

82.  I>isconnt,  as  usually  calculated,  is  the  same  as  Simple 
Interest;  but  true  discount  is  a  deduction  from  an  amount 
which  is  equal  to  the  interest  on  the  remainder  at  the  same 
rate  and  for  the  same  time  for  which  the  deduction  was 
made. 

83.  The  Present  Worth  is  the  sum  paid,  or  the  value 
of  the  note,  or  debt,  after  the  discount  has  been  deducted. 

4» 


42  BANKING. 

84.  To  find  the  Present  Worth. 

Rule. — Divide  the  given  sum  hy  the  amount  of  one 
DOLLAR  for  the  given  rate  and  tims. 

To  find  the  discount,  subtract  the  present  worth  from  the 
given  sum. 

EXAMPLES. 

1.  What  is  the  present  worth  of  $13G0,  due  6  years  hence, 
@6%? 

Int.  on  U  for  6  yrs.  =   .36 
1.00 

Amount,   1.30)1360.00(1000 

Ans.  $1000. 

2.  What  is  the  present  worth  of  $1248,  due  8  months 
hence,  @  6 ^  ?     What  is  the  true  discount? 

3.  What  is  the  present  worth  of  $162.50,  due  6  months 
hence,  @  7%,  and  what  the  discount?  ' 

BANKING.  iVfinM'^ 

85.  Bank  Disconiit  is  computed  in  the  same  manner  as  simple 
interest.  It  is  deducted  from  the  amount  or  face  of  the  note  when 
the  note  is  discounted,  and  the  remainder,  called  the  proceeds,  is 
placed  to  the  credit  of  the  person  for  whom  the  note  is  discounted. 
As  the  person  offering  the  note  can  obtain  the  money  immediately, 
and  the  note  may  remain  unpaid  until  three  o'clock  on  the  day  of 
its  maturity,  banks,  generally,  in  reckoning  time,  include  the  day  on 
which  the  note  is  discounted,  as  well  as  the  day  on  which  it  matures. 
This,  with  the  three  days  of  grace,  for  which  discount  is  also  taken, 
makes /our  more  days  than  the  time  mentioned  in  the  note. 

See,  also.  Transactions  with  Banks. 

86.  To  compute  Bank  Discount. 

Rule. — Multiply  the  amount  hy  i  the  number  of  days,  in- 
cluding the  day  of  discount  and  the  three  days  of  grace,  and 
in  the  product  point  off  three  decimals. 

The  above  will  give  the  interest  at  6^o-  For  any  other  rate, 
add  or  subtract  in  projyortion  as  the  given  rate  is  greater  or 
less  than  6%,  as  in  Art.  7Jf. 


BANKING.  48 

EXAMPLES. 

1.  Robert  F.  Hay,  on  May  2d,  offered  the  following  note, 
properly  indorsed,  for  discount  :— 

$525.  Philadelphia,  March  29,  1867. 

Sixty  days  after  date,  I  promise  to  pay  to  Robert  F. 
Hay,  or  order,  at  the  Union  National  Bank,  Five  Hundred 
and  Twenty-Five  Dollars,  without  defalcation.  Value  re- 
ceived. R.  J.  BiRNEY  &  Co. 

How  much  will  he  receive  as  the  net  proceeds  of  the  note  ? 

60  days  from  March  29th  is  May  28th,  which,  with  the  three 
days  of  grace  added,  gives  May  31st.  From  May  2d  to  May  31st, 
including  the  day  of  discount,  is  30  days. 

Interest  on  $525  for  30  days  =    26.25  discount. 

525  —  26.25        =  498.75  net  proceeds. 

Face  of  the  note,    $525.00 

2.  On  Nov.  4th,  offered  for  discount  a  note  for  S350,  dated 
Oct.  15th,  payable  3  months  after  date.  How  much  cash  will 
I  receive  ? 

Find  the  time,  discount,  and  proceeds  of  the  following 
notes : — 

3.  Discountod  Nov.  4th,  at  6^. 

$750.  Pittsburgh,  Oct.  15,  1866. 

Three  months  after  date,  I  promise  to  pay  to  the 
order  of  Jas.  Dunlap  &  Co.  Seven  Hundred  and  Fifty  Dollars, 
at  the  Citizens'  National  Bank,  without  defalcation.  Value 
received.  John  F.  Chase. 

4.  Discounted  Jan.  12th,  at  7%. 

$1250.yV^.  New  York,  Dec.  10,  1865. 

Sixty  days  after  date,  I  promise  to  pay  to  S.  H. 
Crittenden  &  Co.,  or  order,  Twelve  Hundred  and  Fifty  -p^^^ 
Dollars,  for  value  received.  Henry  T.  Stewart. 


Discounted  July  6th,  at  6  ^ . 


8450./^"g.  Trenton,  N.J.,  May  10,  1866. 

Four  months  after  date,  I  promise  to  pay  at  the 
First  National  Bank,  to  the  order  of  Samuel  T.  Brown,  Four 


44  BANKING. 


Hundred  and  Fifty  fX  Dollars,  without  defalcation  or  dis- 
couut-     Value  received. 

Hayward,  Glkason  &  Co. 


6.  Discounted  Sept.  18tli,  at  6^. 

31875.  Chicago,  Aug.  15,  1866. 

Ninety  days  after  date,  we  promise  to  pay  to  the 
order  of  Charles  Manning  &  Co.  Eighteen  Hundred  and 
Seventy- Five  Dollars,  for  value  received. 

H.  Evans  &  Co. 


87.  To  find  how  large  a  draft,  at  a  given  premium,  may  be 
purchased  for  a  certain  amount. 

Rule. — Divide  the  given  amount  hij  ^1,  increased  hy  the 
rate  of  premium. 

Note. — To  find  how  large  a  draft  may  be  purchased,  when  sold  at  a 
discount,  divide  the  given  amount  by  $1,  less  the  rate  of  premium. 

EXAMPLES. 

1.  How  large  a  draft  may  be  purchased  for  02020,  at  a 
premium  of  1  %  ? 

1.01)2020(2000.  Ans.  $2000. 

2.  What  is  the  face  of  a  draft  on  New  York  to  cost  $18500, 
at  l2%  premium? 

3.  For  what  amount  may  a  draft  on  Cuba  be  purchased 
with  $6430.77,  at  a  premium  of  4J%  ? 

4.  A  commission  merchant  wishes  to  invest  the  proceeds 
of  a  sale,  amounting  to  $4840,  in  a  draft  on  St.  Louis,  which 
can  be  purchased  at  a  discount  of  f  %.  How  large  a  draft 
can  he  obtain  ? 

88.  To  find  the  amount  of  a  note  that  shall  produce  a  given 
sum  when  discounted  at  bank. 

Rule. — Divide  the  sum  reqxiired  hy  the  proceeds  of  ^1  for 
the  given  rate  and  time. 


BANKING. 


45 


EXAMPLES. 

1.  For  what  sum  must  a  note  be  drawn  so  that  the  discount 
for  63  days  at  6  ^  may  be  deducted  and  the  proceeds  will  be 
$1295  ? 

Interest  on  $1  for  63  days  =  .0105. 
$1.0000 
.0105 

.9895)1295(1308.74  Ans. 

2.  Required  the  amount  of  a  note  that  may  be  discounted 
for  33  days,  at  6  ^ ,  and  $5500  received  as  the  proceeds. 

3.  How  large  must  a  note  be  made  to  obtain  $425.50  from 
a  bank,  for  42  days ;  discount  @  6  ^  ? 

89.  Banks,  by  deducting  the  interest  in  advance,  obtain  a 
larger  rate  per  cent,  than  they  would  by  taking  true  discount ; 
and  this  rate  increases  in  proportion  to  the  time  for  which  the 
discount  is  taken.  The  advantages  of  short  credits,  however, 
are  generally  considered  to  be  more  than  an  equivalent  for 
any  such  excess  that  might  be  gained  by  extending  the  time. 

The  following  table  shows  the  rates  of  interest  obtained  by 
banks,  including  the  advantage  from  compounding  the  interest, 
when  they  discount  notes  at  6  and  at  7  per  cent.,  for  any  num- 
ber of  months  from  one  to  twelve.  It  will  be  seen  that  when 
the  time  is  less  than  two  months — the  usual  limit  foi*  which 
notes  are  discounted  in  cities — the  excess  is  inconsiderable. 


KATX. 

d 

a 

S 

S 

CI 

M 

s 
s 

o 

a 

§ 

a 

OD 

o 

a 

S 

8 

CO 

i 

OS 

o 

a 

o 

F-1 

<0 

o 

a 

00 

o 

a 

53 

6  per  cent. 

6.200 

6.216 

6.232 

6.248 

6.264 

6.281 

6.298 

6.315 

6.332 

6.349 

6.366 
7.5ft3 

6.383 

7  "      " 

7.272 

7.295 

7.317 

7.339 

7.362 

7.385 

7.408 

7.432 

7.456 

7.480 

7.527 

At  the  nominal  rate  of  6  per  cent,,  a  bank  receives,  when 
it  discounts  a  note  for  1  month,  ^|j,  or  .5-^y^  of  1  per  cent. 
(^Ilgofl  per  cent,  more  than  6  per  cent,  per  annum  =  |  of 
ONE  CENT  on  $99.50);  when  for  2  months,  ^'g,  or  1^^  per 
cent.;  when  for  1  year,  tf\,  or  6|f  per  cent. 


\. 
46  INTEREST   ACCOUNTS. 

INTEREST   ACCOUNTS. 

90.  In  the  settlement  of  mercantile  accounts,  interest  is 
calculated  or  not,  according  to  custom  or  the  agreement  of 
the  parties.  Amounts  are  considered  due  at  the  time  they 
should  be  paid  in  cash,  or  when  they  are  equivalent  to  cash. 

91.  Bankers,  Saving  Funds,  &c.,  charge  and  allow  interest 
on  dealers'  accounts  according  to  regulations  which  vary  in 
different  places.  After  the  time  is  adjusted,  interest  is  gene- 
rally calculated  by  one  of  the  following  methods : — 

FIRST   METHOD. 

By  Interest  on  eacb  amount  to  the  time  of  set- 
tlement. 


SECOND  METHOD. 
By  Prodact  of  Days. 

THIRD  METHOD. 
By  Daily  Balances. 

92.  By  the  First  Method,  interest  is  reckoned  on  each 
amount  from  the  day  it  is  due  to  the  day  of  settlement,  and 
the  balance  between  the  debit  and  credit  interest  is  added  to 
that  side  of  the  account  on  which  the  amount  of  interest  is 
the  largest. 

When  an  amount  is  not  due  until  after  the  day  of  settle- 
ment, a  discount  is  allowed,  and  entered  on  the  opposite  side 
of  the  account  in  the  interest  column. 

The  labor  of  making  out  such  accounts  is  much  lessened  by  the 
use  of  Interest  Tables,  such  as  Price's  and  others. 


INTEREST    ACCOUNTS. 


47 


U 

t4 

« 

O      «>      >■      <-i 

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1866. 
uly  31 

ug.    5 

ept.  10 

ct.    16 

ov.  20 

1867. 
au.     1 

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Discoun 
contra 

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ndcred,    .    .    . 
t  3  mos.,  as  per 
ndored,    .    .    . 
Net),  as  per  bill 

ed, 

ceeds  of  sales  of 
as  per  your  Ac- 
Sales 

d  your  Draft  on 
sight,  favor  J. 
A  Co 

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1866. 
Sept.  29 

Nov.  12 

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1867. 

Mar.    3 

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raft  on  P.  R.  Brown 
k  Co.  at  30  days,    .    . 
ote  of  11.  Y.  King  & 
[^0.  at  3  months,  your 

favor, 

iscount  on  $1830,  per 

nvoice  of  Coffee,  at 
days,  shipi)ed  per  S 
"Wm.  P.  Clyde,"   . 
ret  Proceeds   of  sa 
of  Sugar  and  Rice, 
per  Aco't  Sales  re 

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48  INTEREST   ACCOUNTS. 

93.  By  the  Second  Method,  each  amount  is  ninltiplied 
by  the  number  of  days  from  the  time  it  is  due  to  the  day  of 
settlement.  The  interest  on  the  sum  of  the  products  for  one 
day  equals  the  sum  of  the  interest  on  each  amount  taken 
separately.  The  interest  on  the  balance  of  products  for  one 
day  equals  the  balance  of  interest. 

When  an  amount  is  not  due  until  after  the  day  of  settle- 
ment, it  is  multiplied  by  the  number  of  days  from  the  day  of 
settlement  to  the  day  when  it  becomes  due,  and  the  product 
is  placed  in  the  column  of  products  on  the  opposite  side,  in 
the  same  manner  as  discount  is  treated  in  the  first  method. 

94.  By  the  Third  Method,  the  balance  existing  at  any 
time  is  multiplied  by  the  number  of  days  it  remains  un- 
changed. The  interest  on  the  product  for  one  day  equals 
the  interest  on  the  balance  for  the  number  of  days  it  con- 
tinues ;  and  the  interest  on  the  difference  between  the  total 
daily  balances  for  one  day  equals  the  balance  of  interest  be- 
tween the  debit  and  credit  sides  of  the  account,  calculated 
on  each  amount  separately,  as  by  the  first  method. 

When  the  rate  of  interest  on  one  side  of  the  account  is 
different  from  the  rate  on  the  other,  the  interest  is  calculated 
on  the  total  daily  products  of  each  side  separately  for  one 
day,  and  the  balance  of  interest  is  taken.  If  the  rate  of  in- 
terest on  both  sides  of  the  account  is  the  same,  the  difference 
between  the  footings  of  the  debit  and  credit  sides  of  the  total 
daily  balances  may  be  taken  first,  and  the  interest  reckoned 
on  that  for  one  day. 

This  method  is  used  by  many  bankers.  Besides  saving 
much  labor,  the  total  daily  balances  may  be  entered  without 
delaying  for  any  particular  day,  and  can  therefore  be  kept  in 
readiness,  and  the  account  completed  with  very  little  addi- 
tional trouble,  whenever  the  day  of  settlement  is  determined. 

For  practice,  all  the  accounts  given  may  be  made  out  in  each  of 
the  different  methods,  and  may  also  be  averaged  by  Compound  Ave- 
rage with  the  same  results  as  above. 


.f^A- 


INTEREST   ACCOUNTS. 


49 


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60 


INTEREST   ACCOUNTS. 


THIRD  METHOD —BY  DAILY  BALANCES. 

The  Westerst  Savhto  Fin<ri> 

In  account  with  Henhy  J.  Kodoebs. 

Interest  to  Feb.  28th,  1867. 


1867. 

1 

1 

18  W. 

Jan. 

2 

To  Cash, 

100 

00 

Jas. 

7 

By  Check, 

fiO 

OO 

" 

12 

U           H 

2M 

oo 

" 

22 

"       " 

100 

00 

Feb. 

11 

«           U 

30 

00 

Feb. 

1 

u           <• 

40 

OO 

« 

21 

M          M 

200 

00 

» 

21 

»        1> 

50 

00 

« 

28 

"  Int.  to  Feb,  28,  '57, 

1 

62 

w 

*♦ 

'*  CasU  on  Bettlemeat 

of  acct. 

338 

38 

_ 

_ 

580 

00 

_ 

6S0 

OO 

Balances.  nnM. 

100,  from  Jan.  2  to  Jan.  7,     5   days  =    500  for  1  day. 


50,      ' 

(        (<      y  < 

«'    12, 

6 

=   250  «'      " 

300,      ♦ 

<i   12  • 

"    22, 

10 

=  3000  "       " 

200,      • 

«         ««   22   « 

Feb.    1, 

10 

=  2000  "       " 

160,      ' 

«      Feb.   1   ' 

"     11, 

10 

=  1600  '«       «• 

190,      ' 

.       ..     11   i 

"     21, 

10 

=  1900  «       " 

340,      ' 

i       »    21  ' 

"     28, 

7 

=  2380  "       « 

11630 
Total  daily  balance  =  $11630  for  1  day. 
Which,  at  b%  interest  =  $1.62. 

3.  What  is  the  balance  due  on  March  1st  of  the  following 
account : — 

The  National  Savikg  iKSTrrunoif 

In  account  with  Portek  A,  FLOEEifCE. 


1867. 

Jan. 

2 

" 

17 

<< 

27 

Feb. 

6 

" 

7 

To  Cash 

By 

To 

By 


To 


Dr.  Amts. 

Cr.  Amte. 

Days. 

Daily  Balance. 

300 

00 

100 

00 

250 

00 

150 
350 

00 
00 

260 

00 

INTEREST  ACCOUNTS. 


51 


Ms                  ^ 

3750 
Bal.  Int.  to 
July  1st, 

p   =5   q         cr"                  p  3 

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52  partial"  payments. 


PARTIAL  PAYMENTS. 

95.  Partial  Payments  are  payments  made  at  different 
times  of  part  of  a  Note,  Bond,  or  other  obligation,  and  should 
be  indorsed  upon  the  back  of  it. 

96.  When  a  partial  payment  is  made  before  tJie  debt  is 
due,  it  cannot  be  apportioned  part  to  the  debt  and  part  to 
the  interest ;  but  interest  is  allowed  on  the  payment  as  well 
as  on  the  principal  to  the  time  the  debt  becomes  due. 

97.  Interest  is  not  allowed  to  form  part  of  the  principal. 
80  as  to  carry  interest. 

98.  The  following  rule  for  computing  interest  when  partial 
payments  have  been  made  has  been  adopted  by  the  Supreme 
Court  of  the  United  States,  and  by  New  York,  Massachusetts., 
and  most  of  the  other  States  of  the  Union,  and  is  called 

THE    UNITED    STATES   RULE. 

I.  The  rule  for  casting  interest  when  partial  payments  have  been 
made,  is  to  apply  the  payment,  in  the  first  place,  to  the  discharge 
of  the  interest  due. 

II.  If  the  payment  exceeds  the  interest,  the  surplus  goes  towards 
discharging  the  principal,  and  the  subsequent  interest  is  to  be  com- 
puted on  the  balance  of  principal  remaining  due. 

III.  If  the  payment  be  less  than  the  interest,  the  surplus  of  in- 
terest must  not  be  taken  to  augment  the  principal ;  but  interest  con- 
tinues on  the  former  principal  until  the  period  when  the  payments, 
taken  together,  exceed  the  interest  due,  and  then  the  surplus  is  to 
be  applied  towards  discharging  the  principal,  and  interest  is  to  be 
computed  on  the  balance  as  aforesaid. 

Decision  of  Chancellor  Kent,  Johnson's  Chancery  Rep.,  toI.  i.  p.  17. 

Or, 

99.  -Apply  whatever  payments  may  be  made  to  the  discharge 
of  the  interest  then  due,  and  the  surplus,  if  any,  to  the  dis- 
charge of  the  principal. 

\    Note. — The  principal  remains  unaltered  when  the  payment  is  less  than 
If  ^^^hemterest  at  the  time  due. 


PARTIAL    PAYMENTS.  53 

100.  It  will  be  perceived  that,  by  the  above  rule,  if  a  person 
owing  the  debt  makes  a  payment  less  than  the  interest,  he  loses  the 
use  of  it  until  the  time  when  the  sum  of  the  payments  exceeds  the 
interest. 

For  instance,  the  interest  on  $1000  is  $5  per  month.  If  $5  per 
month  is  paid,  at  the  end  of  the  year  $1000  would  still  be  due,  while 
the  interest  on  the  payments,  $1.65,  would  be  lost. 

101.  The  Connecticut  rule  differs  from  the  United  States  rule 
only  in  this  respect,  that  if  a  payment  greater  than  the  interest  at 
the  time  due  be  made  before  the  principal  has  been  on  interest  one 
year,  the  person  making  it  is  allowed  interest  on  it  to  the  end  of  the 
year.  If  settlement  be  made  within  one  year,  interest  is  allowed  on 
the  payments  from  the  time  they  are  made  to  the  time  of  settlement. 


EXAMPLES. 

1.  A  bond  was  given  for  $1500,  date^  July  1st,  1863,  pay- 
able 1  year  after  date,  with  interest.  The  following  indorse- 
ments appear  on  the  bond  : — 

July  1st,  1864,  Received  Fifty  Dollars. 

Jan.  1st,  1866,         "        One  Thousand  Dollars. 

How  much  was  due  at  the  time  of  settlement,  July  1st,  1866  ? 

Original  sum  named  in  the  bond,  $1500.00 

■     Interest  from  July  1st,  1863,  to  July  1st,  1864,      $90. 
First  payment,  a  sum  less  than  interest,  60. 

4a 
Interest  from  July  1st,  1864,  to  Jan.  1st,  1866,      135. 

175. 
Second  payment,  a  sum  greater  than  interest,      1000.  825.00 

Balance  for  new  principal,  675.00 

Interest  from  Jan.  1st,  1866,  to  July  1st,  1866,  20.25 

Amount  of  principal  and  interest  due  July  1st,  1866,  $695.25 


2.     $3500.  New  York,  Aug.  17,  1862. 

For  value  received,  I  promise  to  pay  to  Henry 
L.  Barnes,  or  order,  on  demand,  Three  Thousand  Five  Hun- 
dred Dollars,  with  interest.  Robt.  H.  Wilson. 

Indorsements.     March  17th,  1863,  One  Hundred  Dollars.     July 
17th,  1863,  Fifty  Dollars.     Nov.  17th,  1863,  Three  Hundred  Dollars 
Feb.  17th,  1864,  Fifteen  Hundred  Dollars. 

How  much  remains  due  August  17th,  1864? 

6» 


64  PARTIAL    PAYMENTS. 

102.  As  it  is  customary  amoDg  merchants  to  settle  their 
accounts  yearly,  or  oftener,  the  following  rule  is  much  used 
by  them,  and  is  called 

THE   merchants'   RULE. 

I.  First  find  the  interest  on  the  principal  from  the  time  it 
becomes  due  to  the  time  of  settlement,  and  add  it  to  the  prin- 
cipal. 

II.  Find  the  interest  on  each  payment  from  the  time  it  teas 
made  to  the  time  of  settlement,  and  add  the  sum  of  the  interest 
thus  found  to  the  sum  of  the  payments. 

III.  Deduct  the  sum  of  the  'payments  and  interest  thereon 
from  the  amount  of  principal  and  interest,  and  the  difference 
icill  be  the  balance  due. 

Note. — This  is  substantially  the  same  as  the  First  Method  for  finding 
interest  on  Accounts  Current.     (See  Art.  92.) 

EXAMPLES. 


1.     $600.  Philadelphia,  June  12,  1865. 

For  value  received,  on  demand,  I  promise  to 
pay  to  the  order  of  Andrew  W.  Dawson,  Six  Hundred  Dol- 
lars, with  interest,  without  defalcation. 

Chas.  C.  Runyon. 
Indorsements. 

August  12th,  1865,  Received  One  Hundred  Dollars. 

November  12th,  1865,     "        Two  Hundred  and  Fifty  Dollars. 

January  12th,  1866,        "       One  Hundred  and  Twenty  Dollars. 

How  much  was  due  February  12th,  1866  ? 

Principal,  $600.00 

Int.  from  June  12th,  1865,  to  Feb.  12th,  1866,  8  mos.,  24.00 

Amount  of  note  to  Feb.  12th,  1866, 

First  payment,  Aug.  12th,  1865, 

Interest  6  months. 
Second  payment,  Nov.  12th,  1865, 

Interest  3  months. 
Third  payment,  Jan.  12th,  1866, 

Interest  1  month, 

Amount  of  payments  and  interest, 

Balance  due  February  12th,  1866,  $146.66 


624.00 

$100.00 

3.00 

250.00 

3.75 

120.00 

.60 

477.35 

477.35 

INTEREST   TABLE. 


55 


2.     $350. 


Cleveland,  May  9,  18G5. 
Six  months  after  date,  I  promise  to  pay  to  the 
order  of  James  Brown  &  Co.,  Three  Hundred  and  Fifty  Dol- 
lars, value  received.  Edward  S.  Long. 

Indorsements. 

July  12th,  1806,  Received  SeTcnty-Five  Dollars. 
Oct,  27th,  1866,         "         Two  Hundred  Dollars. 

How  much  was  due  Jan.  3d.  1867? 


TABLE 

Showing  in  how  many  YEARS  a  given  pnndpal  will 
double  itself. 


AT    COMPOUND    INTEREST. 

AT  SIMPLE 

INTEREST. 

RATE. 

Compounded 

Compounded 

Compounded 

Yearly. 

Half-Yearly. 

Quarterly. 

1 

100. 

69.666 

69.487 

69.400 

u 

66.66 

46.556 

46.382 

46.298 

2 

50.00 

35.004 

34.830 

34.743 

2i 

40.00 

28.071 

27.899 

27.812 

3 

33.33 

23.450 

23.278 

23.191 

3J 

28.57 

20.150 

19.977 

19.890 

4 

25.00 

17.673 

17.502 

17.415 

4i 

22.22 

15.748 

15.576 

15.490 

5 

20.00 

14.207 

14.036 

13.946 

5J 

18.18 

12.946 

12.775 

12.686 

6 

16.67 

11".896 

11.725 

11.639 

6J 

15.38 

11.007 

10.836 

10.750 

7 

14.29 

10.245 

10.075 

9.989 

/I 

13.33 

9.585 

9.914 

9.328 

9 

12.50 

9.006 

8.837 

8.751 

8} 

11.76 

8.497 

8.346 

8.241 

9 

11.11 

8.043 

7.874 

7.788 

n 

10.52 

7.638 

7.468 

7.383 

10 

10.00 

7.273 

7.+ 

7.+ 

56  AVERAGE   OF   PAYMENTS. 


1/ 

AVERAGE  OF  PAYMENTS. 

103.  The  average  of  several  numbers  is  that  number  each 
would  be  if  their  sum  was  divided  equally.  Thus,  the  average 
number  of  yards  in  four  pieces  of  cloth,  one  containing  2-4 
yards,  one  36  yards,  one  38  yards,  and  one  42  yards,  is  35 
yards.  The  total  number  of  yards  equals  140,  which,  divided 
by  the  number  of  pieces,  equals  35, — the  average  number 
of  yards  in  each  piece. 

104.  Average  or    Equation    of    Payments    is   the 

method  of  finding  the  time  when  the  payment  of  several 
sums,  due  at  different  times,  may  be  made  at  once,  without 
loss  of  interest  to  either  party. 

105.  Accounts  are  settled  both  by  the  methods  given  in 
Interest  Accounts  and  by  averaging.  When  several  bills  of 
goods  are  sold  on  credit,  and  become  due  on  different  dates, 
instead  of  settling  each  bill  separately  as  it  becomes  due,  it  is 
customary  to  average  the  time,  and  settle  the  amount  of  all 
the  bills  at  the  averaged  time.  This  saves  the  labor  of  com- 
puting interest  on  the  several  bills. 

106.  When  all  the  amounts  are  alike,  the  average  time  is 
found  by  adding  the  different  terms  of  credit  together  and 
dividing  their  sum  by  the  number  of  the  amounts.  This, 
however,  is  seldom  the  case,  and  other  rules  have  been  found 
necessary. 

107.  To  find  the  average  time  when  all  the  terms  of  credit 
begin  at  the  same  time. 

Rule. — Multiply  each  amount  hy  its  term  of  credit,  and 
divide  the  sum  of  the  several  prodticts  hy  the  sum  of  the  debts  ; 
the  quotient  will  be  the  average  tim^  of  credit. 


^ 


AVERAGE   OF   PAYMENTS.  67 

EXAMPLES. 

1.  A  merchant  purchases  goods,  January  6th,  amounting 
to  8900 :  $300  payable  in  6  months,  $300  in  8  months,  $300 
in  10  months.  When  may  the  whole  be  paid  without  loss  to 
either  party  ? 

$300  for  6  months  =  1800  for  1  month, 
800   "    8       "       =2400    "     " 
300   "10       "       =3000   "     <' 

900  )7200   "     "     Ans.  8  months. 

$900  at  the  different  terms  of  credit  equals  $7200  for  1  month,  or 
as  many  months  as  $900  is  contained  times  in  $7200,  which  is  8 
times.  Therefore,  if  the  merchant  gives  his  note  payable  8  months 
after  January  6th,  it  will  be  equivalent  to  giving  three  notes  payable 
according  to  the  terms  of  credit  first  proposed. 

Note. — If  the  result  contains  a  fraction  less  than  a  day,  reject  it;  if  it 
is  more,  add  one  to  the  number  of  days.  Also,  when  the  cents  are  less 
than  50,  disregard  them  ,■  when  more,  call  them  $1. 

108.  The  accuracy  of  the  above  rule  has  been  questioned. 
The  author  of  this  book  has  in  his  possession  fourteen  differ- 
ent Arithmetics,  some  of  them  excellent  ones,  in  which  the 
rule  is  stated  to  be  erroneous.  The  following  example  is 
generally  used  to  illustrate  its  inaccuracy : — 

"If  a  man  owes  me  $200,  $100  payable  now  and  $100  pay- 
able in  2  years,  what  is  the  equated  time  ?     Ans.  1  year." 

It  is  said  that  this  is  incorrect,  because  I  lose  the  interest 
on  $100  for  1  year,  which  is  $6;  but  for  the  other  hundred 
I  gain  only  the  true  discount,  $5.66-}-,  making  a  difference 
of  nearly  34  cents. 

Or,  for  the  first  payment  I  should  receive  $100  and  interest 
for  1  year,  which  is  $106;  and  for  the  $100  paid  1  year  be- 
fore it  is  due,  I  should  receive  the  present  worth  of  $100, 
which  is  $94.33|i,  making  a  total  of  $200.33|],  or  34  cents 
more  than  I  receive  by  the  usual  method. 

The  fallacy  is  in  supposing  that  $5.66  is  all  that  I  gain  for 
the  $6  which  I  lose;  for  if  I  receive  the  discount  1  year  be- 
fore it  is  due,  it  is  clear  that  I  gain  the  interest  on  it  for  1 
year ;  and  the  interest  on  true  discount  is  always  equal  to  the 


58  AVERAGE   OF   PAYMENTS. 

difference  between  true  discount  and  interest.     Interest  on 
$5.66  for  1  year  =  34  cents ;  $5.66  +  .34  =  $6.00. 

Again,  if  I  am  not  paid  the  $100  due  now  until  2  years 
have  elapsed,  I  ought  to  receive  as  interest  $12;  if  I  receive 
$200  at  the  end  of  the  first  year,  I  gain  the  interest  on  $200 
for  1  year,  which  is  $12,  the  same  as  before.  Interest  on 
$200  for  1  year  is  the  same  as  interest  on  $100  for  2  years. 

109.  The  following  has  been  given  as  the  true  rule  for  the 
Equation  of  Payments: — 

^'■Find  the  present  worth  of  each  debt,  then  find  the  time  at 
which  the  sum  of  the  present  worths  will  amount  to  the  sum  of 
the  debts;  this  gives  the  true  time." 

EXAMPLE   CALCULATED   BY  THE   "TRUE  RULE." 
Interest  at  Jfper  cent. 


Amount. 

Time. 

Present  Worth. 

1080 

2  years 

1000 

6960 

4    " 

6000 

8040  7000 

■        7000 

1040  disc't.     Interest  on  $7000  for  1  year,  $280. 

280)1040(3  yrs.  8^  mos. 

For  $7000  to  gain  $1040  will  require  3  yrs.  8  mos.  Vl\ 
days. 

SAME   EXAMPLE. 

Interest  at  J^O  per  cent. 

Amount.  Time.  Present  Worth. 

1080.  2  years  600. 

6960.  4     "  2676.92 

8040.  3276.92 

3276.92 


4763.08  disc't.     Interest  on  $3276.92  for  1  year  =  1310.77. 
1310.77)4763.08(3  yrs.  7  mos.  18  days. 

Difference  in  results,  29  days. 


AVERAGE   OF   PAYMENTS.  59 

As  tbe  rate  of  interest  ought  not  to  affect  the  result,  the  accuracy 
of  this  "true"  rule  is  questionable.  Even  if  it  were  correct,  the 
amount  of  labor  required  to  find  the  average  time  by  this  method  is 
sufficient  to  prevent  it  from  coming  into  general  use. 

TTie  present  worth  is  not  in  exact  proportion  to  the  time  and 
amount  due.  The  true  discount  of  ^500  for  1  year  is  not  the 
same  as  the  discount  of  $100  for  5  years. 

MISCELLANEOUS   EXAMPLES. 

1.  If  A  lends  B  §300  for  4  months,  how  long  ought  B  to 
lend  A  $600,  to  equal  the  favor  ?  Ans.  2  months. 

2.  If  I  owe  $400,  payable  in  6  months,  and  pay  8100  im- 
mediately, how  long  may  I  keep  the  balance  as  an  equivalent? 

Ans.  8  months. 

3.  A  man  bought  goods  at  diflFerent  times  to  the  amount  of 
$10,000,  which  are  due  per  average  July  1st.  He  wishes  to 
give  4  notes  in  payment,  due  1  month  apart.  When  ought 
they  to  mature,  to  equal  the  average? 

Ans.  May  15th,  June  15th,  July  15th,  Aug.  15th. 

110.  To  find  the  average  time  when  the  credits  begin  at 
different  times. 

Rule  I. — Find  the  date  when  each  debt  becomes  due. 
(See  Time  Tables.) 

Find  the  time  intervening  between  the  earliest  of  these 
dates  and  the  date  of  each  succeeding  anwunt. 

Multiply  the  amount  first  due  by  0. 

Multiply  each  succeeding  amount  by  the  time  intervening 
between  the  earliest  date  and  the  time  the  amount  becomes  due. 

Divide  the  sum  of  the  products  by  the  sum  of  the  debts;  the 
quotient  will  be  the  average  time  required. 

Add  this  average  time  to  the  day  of  maturity  of  the  amount 
first  falling  due ^  for  the  day  of  payment. 

Taking  the  time  from  the  date  of  maturity  of  the  amount 
first  due,  and  the  terms  of  credit  as  extending  to  the  dates 
when  actually  due,  makes  the  process  similar  to  that  of  the 
preceding  rule. 


60 


AVERAGE   OF   PAYMENTS. 


Note. — When  a  purchase  is  made  for  cash,  it  is  due  on  the  day  of  the 
purchase. 

When  the  term  of  credit  is  the  same  for  each  amount,  labor  may  be 
saved  by  averaging  the  dates  of  the  purchase  and  adding  the  term  of 
credit  to  the  average  date  so  found.  When  all  the  debts  have  the  same 
term  of  credit  except  one  or  two  amounts  which  have  no  credit,  add  inter- 
est to  those  amounts  for  the  general  term  of  credit,  and  then  average  as 
before,    for  finding  the  timej  see  Interest;  also  Time  Table. 


EXAMPLES. 


1.  Required  the  time  when  the  amount  of  the  debts  as 
below  stated  becomes  due  per  average. 


Date  of 
Purchase. 

Amount. 

Time 
Credit. 

When  due. 

Time  from. 

Jan.    6, 

|300    ■ 

6  mos. 

July    6. 

July  6  to  Aug.  7, 

Apr.  10, 

200 

6      '« 

Oct.  10. 

32  days. 

May    7, 

400 

3     " 

Aug.    7. 

July  6  to  Oct.  10, 
96  days. 

Statement  arranged. 


Due. 

Amount. 

Time  (in  days). 

Product 

July    6, 

300 

0 

00000 

Aug.    7, 

400 

X         32 

12800 

Oct.  10, 

200 

X        96 

19200 

m. 


900  ) 32000 (35| 

Ans.  36  days  from  July  6th  is  August  11th. 

ABBREVIATED   METHOD. 


The  cents  and  dollars  may  be  disregarded,  in  averaging, 
without  any  important  change  in  the  result. 


EXAMPLE. 

Due. 

Amount. 

Time. 

Amount, 
omitting  dolls,  and  cents. 

Product. 

Jan.  5, 

6372.50 

0 

X     637 

= 

000 

«  15, 

264.25 

10 

X       26 

z= 

260 

"  25, 

227.50 

20 

X       23 

=2 

460 

«  30, 

329.10 

25 

X       33 
119 

^^^ 

825 
)1545(12iH 

AVERAGE    OF    PAYMENTS. 


61 


USUAL   METHOD. 

872.50  X  0  =  000000 
264.25  X  10  =  264250 
227.50  X  20  ==  455000 
329.10  X  25  =  822750 


1193.35  )1542000(12ifi||80. 

Ans.  Jan.  18fh,  by  both  metbods,  the  difference  being  only 
about  yf  5  of  a  day. 

112.  By  Interest. — Find  the  interest  on  each  amount  for 
the  time  obtained  as  hefore;  then 

Find  how  long  it  will  take  for  the  whole  debt  to  gain  that 
amount  of  interest;  the  result  will  be  the  average  time. 

Note. — The  equated  time  will  bo  the  same,  whatever  may  be  the  rate 
of  interest :  we  can,  therefore,  take  that  rate  which  is  most  convenient. 
Interest  tables  can  also  be  profitably  used. 


EXAMPLE   UNDER  RULE  I. 


Due. 
July    6, 
Aug.  7, 
Oct.  10, 


Amount. 
300 
400 
200 


Days. 

0 
32 
96 


Int.  at  6%. 
000 
2.133 
3.200 


$900  $5,333 

Interest  on  $900  for  1  day  =  .150. 
For  $900  to  gain  5.333  requires  ($5,333  ~  150)  35yVu  days. 
36  days  from  July  6th  =  Aug.  11,  Ans.  as  before. 

2.  Calculate  the  above  at  the  rate  of  12  per  cent. 

3.  When  shall  a  note  to  settle  the  following  account  be 
made  payable? 

Henry  Fleld 

To  James  L.  Edwards  Dr. 


1867. 

Mar. 

8 

Apr." 

4 

<i 

16 

May 

10 

To  Mdse  @  3  mos.,  as  per  bill  rendered, 
"      "  30  days,      "         "  " 

<«      «  60    "  ««        "  " 

"      "  3  ruos.       "         "  " 


250 

00 

100 

00 

300 

00 

420 

00 

1070 

00 





62 


AVERAGE   OP   PAYMENTS. 


Dae. 

Amount. 

Time. 

Int  at  12  per  cent. 

May    4, 

100 

0 

000 

June    3, 

250 

30 

2.500 

June  14, 

300 

41 

4.100 

Aug.  10, 

420 

57 

7.980 

For  SI 070  at  12%  to  gain     14.580    will    require 
4.5  days;  45  days  from  May  4th  is  June  18th. 

By  taking  ^  of  the  number  of  days  as  a  multiplier,  interest  at  12  J& 
for  1  day  on  §1070  =  .Sodf. 

113.   ABBREVIATED   METHOD,  BY   INTEREST. 

Labor  is  saved  by  the  use  of  the  following  rule  in  finding 
the  time  when  due. 

Rule. —  Count  the  time  from  the  fikst  day  of  the  first 
month  given. 

Set  opposite  each  month  the  number  of  months  intervening 
between  it  and  the  first  month. 

This  number  added  to  the  term  of  credit,  with  the  day  of 
the  month  opposite  to  which  it  is  set,  will  give  the  time  for 
which  to  calculate  interest. 

Then  calculate  interest  for  the  months  and  days  thus  found, 
at  12 per  cent.,  in  the  same  manner  as  in  the  previous  rule. 


Date  of  Sale. 
Jan.      6, 
Feb.  12, 
Mar.  18, 


EXAMPLE. 

Time  of  Credit. 

3  mos. 

4  " 
3  « 


Amonnt. 

§300 

400 

250 


Amount 

$300 
400 
250 

$950 


No.  of  Months 
from  1st  mo. 

0 

1 

2 


STATEMENT. 

Total  Time, 
mos.  days. 

3      6 
5    12 
5    18 
Total  Int. 


Int.  at  12  per  cent. 

.600  =  Int.    6  days. 


9.000==    ' 

'      3  mos. 

1.600=    ' 

'    12  days. 

20.000=    ' 

*      5  mos. 

1.500=    ' 

'    18  days 

12.500=    ' 

'      5  mos. 

45.200 


AVERAGE   OF   PAYMENTS.  63 


Interest  on  amount  of  debt,  $950,  for  1  mo.  @  12  fo  =■  $9.50. 
9.50)4520(4  mos. 
3800 

720 

30  days  in  a  month. 


950)21600(22ff  days. 

Average  time,  4  mos.  23  days,  Trhich,  counted  from  Jan.  let,  givea 
May  23d,  Ans. 

BY  USUAL   METHOD. 


Amount 

$300 

400 

250 

When  due. 

Apr.     6 

June  12 

"     18 

Daja.           Product 

0                000 

67           26800 

73           18250 

950 

950)45050(4  mos. 
3800 

705 
30 

950)21150(22|f  days. 

The  abbreviated  method  is  used  to  a  considerable  extent  in  New 
York,  Philadelphia,  and  Boston,  on  account  of  the  labor  saved  in 
counting  time  and  in  reckoning  interest.  Some  have  claimed  that 
results  may  be  obtained  by  this  method  with  greater  facility  than 
by  the  use  of  Equation  Tables. 

In  some  instances,  the  result  will  not  exactly  agree  with 
that  obtained  by  the  use  of  days  for  the  time  between  the 
dates  when  due,  from  the  fact  that  some  months  contain  more 
days  than  others ;  but  in  ordinary  cases  the  difference  will 
be  but  a  trifle,  while  the  labor  of  averaging  is  very  mucli 
diminished.  The  correct  time  may  be  obtained  by  adding 
to  the  total  time  one  day  for  every  month  intervening  be- 
tween the  first  day  and  the  day  of  maturity  which  contains 
31  days. 

2.  Bought  goods  as  follows : — 

Jan.    8,  1867,         $250  @,  3  mos.  credit. 
Feb.  13,      "  360  "   4    "         " 

Mar.   6,      "  125  "  60  days      " 

What  is  the  average  date  of  payment  ? 


64  AVERAGE    OF   ACCOUNTS. 


AVERAGE  OF  ACCOUNTS, 

OE  COMPOUND   EQUATION. 

114.  Ill  the  settlement  of  accounts  it  is  frequently  desirable 
to  know  when  the  balance  of  an  account  may  be  paid,  so  that 
no  interest  need  be  calculated  and  yet  have  neither  party 
suffer  loss.  For  instance,  a  commission  merchant  sells,  at  a 
credit  of  6  months,  goods  for  a  consignor  amounting  to 
$2000,  the  charges  on  which  are  $500,  due  at  the  time  of 
sale.  Instead  of  remitting  §1500,  the  balance  of  account,  as 
soon  as  the  cash  for  the  goods  is  received,  the  commission 
merchant  retains  it  until  the  interest  on  §1500  is  equal  to  the 
interest  on  8500  for  6  months;  and  as  $1500  is  three  times 
as  large  as  8500,  he  retains  the  balance  J  of  6  months,  which 
is  2  months.  This,  added  to  the  6  months'  credit,  gives  8 
months  from  the  day  of  sale  to  the  time  when  the  balance  of 
account  should  be  paid. 

115.  To  find  the  equated  time  for  the  settlement  of  an 
account  when  there  are  both  debit  and  credit  amounts. 

Rule  I. — 1.  Find  the  time  when  due  for  each  side  of  the 
account  separately. 

2.  Multiply  the  smaller  side  of  the  accoxtnt  hy  the  time 
"between  the  two  dates  thus  found,  and  divide  the  product 
hy  the  balance  of  the  account.  The  quotient  will  he  the  time 
to  be  counted  from  the  date  of  the  larger  side. 

If  the  LARGER  side  of  the  account  falls  due  LATEST,  count 
FORWARD  from  the  LATER  date. 

If  (he  LARGER  side  of  the  account  falls  due  EARLIEST, 
count  BACK  from  the  EARLIER  date. 

EXAMPLES. 

1.  When  shall  a  draft  for  the  settlement  of  the  following 
account  be  made  payable  ? 


Db. 


AVERAGE    OF    ACCOUNTS. 

James  B.  Chauncey. 


65 


Ck. 


1866. 

July   10  To  Cash, 


1866. 
600 1 00    Aug.    15  j  By  Mdse^ 


18000 --1200  =  15 


coo  X  30  =  18000 

15  days  counted  forward  from  the  later  date,  on  which  tlie 
larger  amount  falls  due,  gives  August  30th. 

The  interest  on  $600  for  30  days  equals  that  on  $18000  for  1  day  ; 
as  many  days  are  required,  therefore,  as  1200  is  contained  times  in 
18000,  which  are  15.  Then,  as  Mr.  Chauncey  has  retained  §000 
for  30  days,  to  get  an  equivalent,  we  retain  the  balance  of  account, 
$1200,  after  it  has  become  due,  for  fifteen  days,  which  brings  us  to 
August  30th. 

2.  Find  the  time  when  the  balance  of  the  fcUowing  account 
becomes  due : — 


Dk. 


James  B.  Chauncey. 


Cb. 


1866. 

Jan.    16  To  Mdse., 


I  1866.  I 

ISOOiOO    Feb.    15  By  Cash, 


From  January  16th  to  February  15th  =  30  days. 

1800  —  600  =  1200,  Bal.  of  acconnt.         Smaller  side,  $600  X  30  =  18000 
18000  -r- 1200  =  15 

15  days  counted  back  from  January  16th,  the  earlier  date, 
gives  January  1st. 

In  the  above  account,  as  the  larger  sum  is  due  first,  it  is  evident 
the  balance,  $1200,  should  be  paid  long  enough  before  January  16th 
to  produce  interest  equal  to  the  interest  on  §600  for  the  time  be- 
tween January  16th  and  February  15th,  viz.,  15  days  before  January 
16th;  or,  30+  15  =  45  days  before  February  15th.  When  the  bal- 
ance becomes  due  in  time  past,  interest  is  added  to  obtain  the 
amount  to  be  paid  at  the  time  of  settlement. 

3.  The  following  account  appears  on  my  Ledger : — 

De.  Samuel  T.  Hanson.  Cr. 


1859.  I    1859. 

Jan.    11   ToHdse.atemonths,     17124    Jan.    11   By  Cash, 


When  should  the  balance  be  paid,  or  draw  interest? 
£  6* 


looigo' 


66 


AVERAGE    OF    ACCOUNTS. 


From   January  11th  to  July  14th,   counting  3   days  of 
grace,  the  tiuic  when  the  debit  amount  is  due,  is  184  days. 

100  X  184  =  18400        171.24  — 100  =  71.24,  Bal.  of  account. 
18400-^71.24  =  258+ 

Then  258  days  counted  forward  from  July  14th,  the  later 
date,  is  March  29th.  Ans.  March  29,  18G0. 

4.  Find  the  average  of  the  followingr  account: — 


Dr. 


Ohajles  D.  Oajlton. 


Cr. 


1867. 
Mar. 


To  Charges, 


1867. 
Mar. 


By  Mdse. 


8  mos., 
a   " 
6    " 


323  00 
263100 
241  00 


Credits  duo  October  3d. 


Ans.  Oct.  10/13. 


116.  Rule  II. — Multiply  each  sum  l>y  the  number  of  days 
intervening  between  the  date  of  its  maturity  and  the  earliest 
day  on  which  any  mm  on  either  side  of  the  account  becomes 
due. 

Then  divide  the  difference  between  the  sum  of  the  products 
on  the  debit  and  the  sum  of  the  products  on  the  credit  sidcy  by 
the  balance  of  tJie  account. 

The  quotient  will  be  the  tim^  to  be  counted  FORWARD  from 
the  date  on  which  the  first  amount  becomes  due,  when  the  bal- 
ance of  the  account  and  the  difference  of  the  sums  of  the  pi^ 
ducts  are  both  on  the  same  side  of  the  account,  but  back- 
ward from  the  same  date  if  they  are  on  OPPOSITE  SIDESS  of 
the  account. 

EXAMPLE   I. 


BY    PRODUCTS. 


Due. 
May  22, 
June    1, 
July  11, 


Amt.     Days.    Product. 

300         0 

10   1500 
50  10000 


150 
200 


G50 
420 


11500 
7300 


230     )  4200(l8A 


Due. 
May  27, 
June  6, 
July  10, 


Atnt. 

200 
100 
120 

420 


Days.    Product. 
5  10(10 


15 
40 


1500 
4800 

7300 


AVERAGE    OF   ACCOUNTS. 


67 


18  days  counted  forward  from  May  22d  gives  June 
9th.— Ans. 

The  discount  on  the  debit  side  of  the  account  equals  the 
interest  of  6650  for  the  time  which  is  equivalent  to  $11500 
for  1  day,  and,  starting  at  the  same  date,  the  discount  on  the 
credit  side  will  equal  the  interest  on  §420  for  the  time  equiva- 
lent to  $7300  for  1  day.  The  balance  of  the  account  can  re- 
main unpaid  as  long  after  May  22d  as  the  time  required  for 
it  to  equal  §4200  for  1  day,  which  is  18  days. 


Dufl.  Am't.  Days.  Int.  12  per  cent. 

May   15,  2500      0 

"     24,  1300      9  3.900 

June  14,    400    21  2.800 


EXAMPLE  II. 

BY   INTEREST. 
Due. 


4200 
2400 

1800 


6.700 


Am't.  Days.  Int.  12  per  cent. 


May  21,    400  6 

"     30,  1200  15 

June    2,    800  18 

2400 


.800 
6.000 
4.800 

11.600 
6.70.1 

4.900 


For  $1800  to  gain  $4.90  will  require  8^  days. 

Eight  days  counted  backwards  from  May  15th  is  May  7th. 

If  the  above  account  were  settled  May  15th,  $11.60  should 
be  charged  as  interest,  and  §6.70  allowed  as  discount.  In- 
stead of  adding  $4.90  to  the  balance  of  the  account,  time  is 
counted  back  to  a  date  from  which  the  interest  on  the  balance 
of  the  account  will  equal  the  balance  of  interest. 


Date. 
1866. 

July  12, 
Aug.  15, 

Oct.  10, 


EXAMPLE   III. 
BY   ABBREVIATED   INTEREST    METHOD 

CREDIT    SIDE    OF    THE    ACCOUNT. 
Time  of  Credit.    Am't. 


.  No.  mo8.  from  Total  Time, 
earliest  mo.      mos.  days. 


3  mos. 
Cash 

3  mos. 


$100 
250 

350 
$700 


400 

5.000 

1.250 

r  24.500 

10-^    1.050 

i      .117 

Total  credit  interest,  $36,317 


Int.  at  12  per  cent. 
$4,000  int.  4  mos. 


12  ds. 

"     2  mos. 
"  15  ds. 
"     7  mos. 
"     9  ds. 
"     1  day. 


68 


AVERAGE  OF   ACCOUNTS. 


Date. 

1866. 
June  15, 

Aug.    9, 

Sept.  18, 


DEBIT    SIDE 

OF   THE    ACCOUNT. 

Ime  of  Credit 

■^^    earliest 

^Z"  '^^!fJ  Ji^f     Int-  at  12  per  cent 
mo.    mos.  days.                       '^ 

3  mos. 

§200 

0 

3 

,f.  /  6.000  int.  3  mos. 
^°\    1.000    "  15  ds. 

3     " 

400 

2 

5 

0/20.000    "     5  mos. 
^\    1.200    "     9d8. 

1     " 

300 

3 

4 

-J,/ 12.000  "  4  mos. 
^^t    1.800    "  18  ds. 

900 
700 

Total  debit  int.     42.000 

" 

credit 

"      36.317 

Bal.  of  account,  $200       g^j  ^^  ^^^^^^^^   ^g  gg3 

Interest  on  $200  for  1  month  =  $2. 

5.683  -4-  2  =  2  months  25  days. 
2  months  25  days  forward  from  June  15th  is  Aug.  25th,  Ans. 

For  additional  practice,  average  the  examples  already  given 
by  each  of  the  different  methods. 


Average  the  following  Account  Sales  : — 

Account  Sales  of  Merchandise  for  joint  account  of  Newhall, 
Hart  &  Co.,  H.  Foster  &  Co.,  and  Ourselves. 


1866. 

April 


9 


Sold  Leonard  Barker  &  Co.,  @  6  mos. : — 
<@>  15  hhds.  Cuba  Sugar,  25,422  lbs.,  @ 

16c. 
^  32  half-chests  Oolong  Tea,  1805  lbs., 

tare  480  =  1325,  @  1.10 


CHAKGES. 

Fire  Ins.  on  §6000  @,lh%. 
Cooperage,  Weighing,  Labor,  &c 
Com.  and  Guar,  on  §5525  @  5^, 

Net  proceeds  due  per  average. 


E.  E.  New  Yokk,  April  9th,  1866. 


$90.00 

17.37 

276.25 


$5141 
I 

Paul  &  Thompson, 


$4067 
1457 


$5525 


383 


62 


40 


Note  1. — Take  the  sales  as  the  credit  side,  and  the  charges  as  the  debit 
side. 

2.  Accounts  Sales  are  averaged  to  know  when  the  proceeds  may  be  paid 
without  charging  interest  to  either  party, 


AVERAGE   OF   ACCOUNTS. 


69 


Average  the  following  accounts  : — 
Dr-  Parker  Burton. 


Ce. 


1866. 

May 

22 

29 

June 

10 

To  Mdse.  at  3  mos., 
"      "       "  30  days, 


1866. 

500  00 

May 

25 

250  00 

June 

9 

150  loo 

1 

July 

2 

By  Cash, 
"   Sundries, 
"   Cash, 


300  00 
40000 
lOOlOO 


Dr. 


Ans.  Balance  SlOO,  due  per  average, 
B.  F.  Lossing  &  Oo. 


Cr. 


1866. 

1866. 

1 

Mar. 

10 

To  Mdse.  (net) 

250 

75 

Mar. 

20 

By  Cash, 

250 '75 

" 

15 

"      "       @  3  mos., 

187 

50 

" 

2 

"   Draft  @  30  days. 

120100 

Apr. 

14 

"      «           4    » 

262 

25 

Apr. 

26 

"   Cash, 

150  00 

May 

24 

"      "           3    " 

465 

60 

May 

24 

"   Sundries, 

50  00 

The  following  table  will  be  found  useful  when  averaging 
accounts. 

To  find  the  time  between  two  dates : — Look  on  the  left  for 
the  month  containing  the  earlier  date,  and  on  the  same  line, 
to  the  right,  for  the  month  containing  the  later  date :  the 
number  of  days  under  the  name  of  the  month,  or  the  number 
of  months  at  the  top  of  the  column,  will  give  the  required 
time,  if  both  dates  are  on  the  same  day  of  the  month.  If  the 
day  of  the  month  of  the  later  date  is  difi'erent  from  that  of  the 
earlier  date,  add  or  subtract,  as  the  case  may  be. 

To  find  the  day  which  is  a  given  number  of  days  after  a 
certain  date  : — Find  the  number  of  days  in  the  table,  opposite 
the  month,  containing  the  given  date  which  is  next  larger 
than  the  given  number  of  days ;  subtract  the  given  number 
of  days,  and  count  back  from  the  same  day  of  the  month 
above  the  number  taken,  as  the  day  of  the  month  of  the 
given  date. 

For  example,  to  find  the  day  which  is  144  days  after  June 
28th,  look  opposite  June  for  the  number  next  greater  than  144, 
which  is  153  in  Nov.  144  from  153  =  9;  and  9  days  back 
from  Nov.  28th  brings  us  to  Nov.  19th,  the  required  date. 


70 


TIME   TABLE. 


"« 


^  i 

^  c> 

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^  e 

S 

-i  1 


O 
S 

a 

Feb., 
365  da. 

March, 
365  da. 

''eo 

^4 

m  « 
II 

Sept., 
365  da. 

Oct., 
866  da. 

H 

^i 

^1 

s 

& 

1^ 

a 

III! 

r  so 

>co 

s 

B 
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tr-       CO!     £i-i 

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J"  5^ 

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CD          CD 

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MONEY.  71 

MONEY,  WEIGHTS,  AND  MEASUKES. 

MONEY. 

117.  Money  is  value,  or  its  representative,  used  as  a  me- 
dium of  exchange  and  as  a  standard  of  measure. 

118.  The  word  money  is  derived  from  the  Latin  monetas, 
•which  some  derive  from  monere,  to  "  admonish,"  to  "  inform," 
— the  stamp  on  a  coin  informing  the  holder  of  its  value.  The 
Latin  word  pecunia,  "  money,"  is  supposed  to  be  derived  from 
pecus,  "  a  sheep,"  because  in  early  times  sheep,  or  stamped 
skins,  were  used  in  place  of  money. 

119.  In  different  countries,  and  in  different  conditions  of 
society,  various  articles  have  been  made  to  serve  as  money. 
Homer  tells  us  the  armor  of  Diomede  cost  nine  oxen,  while 
that  of  Glaucus  cost  one  hundred ;  and  the  oldest  Greek  coins 
■were  stamped  with  an  ox, — intimating  the  previous  employ- 
ment of  cattle  as  money.  The  laws  of  the  ancient  Germans 
imposed  penalties  for  offences,  to  be  paid  in  cattle;  while 
slaves  and  cattle — or  "  living  money,"  as  it  was  then  called 
— were  in  common  use  among  the  Anglo-Saxons.  The  Car- 
thaginians and  Spartans  employed  for  this  purpose  skins  and 
pieces  of  leather  marked  with  a  stamp.  In  Hindostan,  small 
shells  called  cowries  are  used  in  the  smaller  payments;  they 
also  circulate  widely  in  Africa.  In  Abyssinia,  rock-salt,  in 
Iceland,  dried  fish,  and  among  the  North  American  Indians, 
the  belt  of  wampum,  ia  used  as  money.  In  1776,  according 
to  Adam  Smith,  the  workmen  of  a  certain  Scottish  village 
carried  nails  as  money  to  the  baker's  and  to  the  ale-house. 

120.  Various  metals  have  been  used  :  the  Spartans  adopted 
iron ;  the  ancient  Romans,  copper ;  the  Russians,  at  one  time, 
platinum ;  but  gold  and  silver  have  been  preferred  by  modern 
nations,  as  best  adapted  for  the  purposes  of  money,  for  the 
following  reasons : — 


72  MONEY. 

I.  Their  value  is  comparatively  uniform,  and  less  subject 
to  variations,  and  they  may  be  kept  or  used  without  much 
deterioration. 

II.  Their  nature  is  such  that  they  can  easily  be  iden- 
tified. 

III.  They  are  capable  of  division  or  combination  without 
loss  of  value. 

IV.  They  possess  great  value  in  small  compass,  and  are 
capable  of  being  easily  transported  from  place  to  place. 

Gold  and  silver,  in  their  purity,  are  soft,  easily  bent  or  in- 
jured, and  exposed  to  rapid  wear :  they  are  therefore  mode- 
rately hardened  by  the  admixture  of  an  alloy.  For  gold  coin 
both  copper  and  silver  are  employed  as  an  alloy;  and  the 
color  of  the  coin  inclines  to  yellow  or  red,  as  the  silver  or 
copper  may  predominate. 

121.  Money  is  either  real  or  imaginary.  Real  money  in- 
cludes all  coins, — such  as  dollars,  sovereigns,  and  the  like ; 
imaginary,  or  nominal  money,  is  that  which  does  not  exist  in 
specie, — such  as  mills,  pounds,  «&c. 

122.  The  Moneys  of  Aeconnt  are  those  in  which  ac- 
counts are  kept,  and  include  imaginary  as  well  as  real  money; 
out  the  relations  of  the  denominations  are  not  susceptible  to 
fluctuations,  like  currency. 

123.  Paper  money  is  a  substitute  for  metallic  currency. 

124.  Aside  from  the  amount  in  actual  existence,  the 
rapidity  and  value  of  exchanges  affect  the  abundance  or 
scarcity  of  money.  Any  thing  which  dispenses  with  its  use 
diminishes  the  amount  of  circulating  medium  necessary  for  a 
community,  and  in  effect  is  the  same  as  adding  so  much  to 
the  currency.  The  accounts  of  merchants,  notes,  bills  of  ex- 
change, and  credits  generally,  are  of  this  nature. 

125.  When  two  kinds  of  money  are  in  circulation,  the  one 
of  least  value  will  displace  the  other. 


MONEY.  73 

126.  The  term  Bullion  is  applied  to  uncoined  gold  or  sil- 
ver, and  includes  gold  dust,  amalgamations,  and  ingots,  or  bars. 

127.  Coin,  or  Specie,  is  metal  of  known  weight  and 
fineness,  stamped  for  the  purpose  of  being  used  as  money. 

128.  The  smallest  coin  is  believed  to  be  the  Turkish  para, 
weighing  from  1\  to  2  J  grains,  containing  a  small  portion  of 
silver,  and  its  value  is  one-thirtieth  of  our  cent.  The  smallest 
copper  coin  of  Europe  is  the  centime  of  Genoa,  weighing  four- 
teen grains,  and  worth  one-twelfth  of  our  cent.  The  ten- 
copeck  piece  of  Russia  is  equal  in  weight  to  4i  copper  cents ; 
a  copper  piece  of  1795  weighs  890  grains ;  about  as  heavy  as 
5J  copper  cents. 

129.  Currency  is  money  in  common  circulation,  whether 
coin  or  paper. 

130.  Billon  (from  the  French,  signifying  base  coin)  is 
the  name  of  a  mixture  having  a  small  proportion  of  silver 
combined  with  some  base  metal. 

131.  Tokens  are  coins  whose  intrinsic  value  is  below  that 
assigned  to  them  by  law,  and  are  not  a  legal  tender  above 
certain  small  amounts.  Coins  in  hillon — the  nickel  cent,  and 
the  one,  two,  three,  and  five  cent  pieces  of  1866 — are  tokens. 
(See  Value  of  U.  S.  Coins.) 

RELATIVE  VALUES  OF  GOLD  AND  SILVER. 

132.  In  the  United  States,  as  15.988  to  1. 

"  England,  <'  14.287  "  1. 

«  France,  "  15.50     "  1. 

"  Spain,  «  16.00     «  1. 

«  China,  "  14.25     "  1. 

133.  In  America  and  Great  Britain,  gold  is  the  standard 
of  value.  Silver  is  the  standard  of  value  in  France,  Belgium, 
Holland,  Austria,  and  the  Zollverein  States,  Russia,  and  the 
East  Indies.  Payments  made  in  China  are  either  in  silver 
dollars  or  silver  ingots. 

7 


74  MONET. 

134.  In  Great  Britain, 

A  pound  of  standard  gold  |^  fine  is  coined  into  £46  14^. 
6cZ.  =  £3  17s.  10  J^.  per  ounce,  which  is  the  mint  price  for 
standard  gold,  and  is  equivalent  to  818.94  per  ounce. 

A  pound  of  silver  (|^  fine)  is  coined  into  66  shillings  = 
5s.  Qd.  per  ounce.     The  mint  price  is  5s.  per  ounce,  |2  fine. 

A  pound  of  copper  is  coined  into  24  pence. 

A  pound  of  bronze  of  1860,  95  parts  of  copper,  4  of  tin, 
and'l  of  zinc,  is  coined  into  48  penny  pieces,  or  80  half-pen- 
nies, or  160  farthings. 

135.  In  France, 

A  kilogramme  of  gold  is  coined  into  155  napoleons,  or  3100 
francs. 

A  kilogramme  of  silver  is  coined  into  200  francs. 

136.  The  standard  of  the  various  moneys  in  the  north  of 
Europe  and  Germany  is  the  Cologne  mark  weight,  Hamburg 
standard  of  fine  silver ;  that  is,  3608  grains  Troy, 

In  Sweden,  Norway,  Denmark,  and  Mecklenburg,  it  is 
coined,  when  alloyed  with  copper,  into  9i  silver-species, 
dalers  or  thalers. 

In  Russia,  into  13  silver  roubles. 

In  Prussia  and  Hanover,  into  14  thalers. 

In  the  Southern  States  of  the  Zollverein,  into  24  J  gulden. 

In  Austria,  into  20  gulden. 

In  Hamburg  and  Lubeck,  into  35  marks  current. 

The  acts  of  Congress  of  1834  and  1843,  fixing  the  value 
of  certain  foreign  coins,  and  declaring  the  same  as  legal  ten- 
der, were  repealed  by  act  of  February  21,  1853. 

It  will  be  seen  in  the  following  table  that  the  half-dollar, 
and  smaller  silver  coins  issued  since  1853  are  worth  less,  in 
proportion,  than  the  silver  coins  issued  before  that  time. 

The  smaller  coins  are  designed  chiefly  for  the  purpose  of 
making  change,  and  are  not  a  legal  tender  above  certain  small 
sums.     (See  Legal  Tender.) 


COINS   OF   THE   UNITED   STATES. 


75 


TABLE 

Showing  the  weight  and  fineness  of  the  Coins  of  the  United 

JStates,  as  given  hy  acts  of  Congress. 


GOLD. 


}}  or  .913}  PINK. 

Standard  Weight. 

Pure  Gold. 

Coml.  Val. 

Eagle,  coined  before  1834 

270  grains 
135      " 

247.5    grains 
123.75     «' 

$10.62 
5.31 

1.  <<          <(          (<          <( 

67.5  " 

61.87     " 

2.65 

.900  FINK. 

Eagle  coined  since  1884 

258.     " 

232.2       " 

10.00 

J  "           "         <«        " 

129.     " 

116.1       «« 

5.00 

JL     (<                 (<              «            << 

64.5  " 

58.05     '« 

2.50 

1  Dollar  piece, 

25.8  " 

23.22     " 

1.00 

1  Double  Eagle, 

516.     " 

464.4       « 

20.00 

3  Dollar  piece, 

7.74  grains 
SILVER. 

69.66     " 

3.00 

Standard  Weight.    Pure  Silver. 
Dollar  before  1837,  and  shares 

Coml.  VaL 

in  proportion,      892.4  fine,       416.  grs. 
Dollar  since  1837,  900  fine,          412.5  " 

371.25    grs. 
371.25     " 

$1.05 
1.05 

J  "   '37  to  June, '53,"     " 

206.25  grs.     185.625  grs. 

.52^ 

1      <(          <<                           <<            (<         (C 

103.125 

92.8125  " 

.26 

Dime  "               "       "     *' 

41.25 

37.125    " 

.lOJ 

1    <i     <(               (<       ((     << 

20.625 

18.5625  '« 

.05 

3  Cent  piece,  March,  1851, 

to 

March,  1853,  f  fine. 

12.375 

"        10.8        " 

.03 

J  Dollar  since  June,  1853, 

192. 

"       172.8 

.50 

(And  smaller  coins  in  proportion.) 


Old  Cent,  178  grains  copper. 
Cent  of  1866,     48  grs.     95%  copper,   3%  zinc,  and  2^  tin 
piece  "        96  "        95         «'  5%  nickel. 


2 
3  «' 

6  " 


96 

32  "        75        "        25% 
"  5  grams,  or  11^^^  grs.,  75%  copper,  25%  nickel. 


A  STATEMENT  OF  FOREIGN    GOLD  AND  SILVER  COINS. 

(Peepared  bt  the  Dieector  of  the  TJniteb  States  MiifT.) 

Explanatory  Kemarks. — The  first  column  of  the  Tables 
of  Foreign  Coins  embraces  the  names  of  the  countries  where 
the  coins  are  issued ;  the  second  contains  the  names  of  the 


76  FOREIGN   GOLD   AND   SILVER   COINS. 

coin,  only  the  principal  denominations  being  given.  The 
other  sizes  are  proportional ;  and,  when  this  is  not  the  case, 
the  deviation  is  stated. 

The  third  column  expresses  the  weight  of  a  single  piece  in 
fractions  of  the  troy  ounce,  carried  to  the  thousandth,  and,  in 
a  few  cases,  to  the  ten-thousandth,  of  an  ounce.  The  method 
is  preferable  to  expressing  the  weight  in  grains  for  commercial 
purposes,  and  corresponds  better  with  the  terms  of  the  mint. 
It  may  be  readily  transferred  to  weight  in  grains  by  the  fol- 
lowing rule: — Remove  the  decimal  point;  from  one-half  de- 
duct four  per  cent,  of  that  half  and  the  remainder  will  he 
grains. 

The  fourth  column  expresses  the  fineness  in  thousands, 
i.  e.  the  number  of  parts  of  pure  gold  or  silver  in  1000  parts 
of  the  coin. 

The  fifth  and  sixth  columns  of  the  first  table  express  the 
valuation  of  gold.  In  the  fifth  is  shown  the  value  as  com- 
pared with  the  legal  content,  or  amount  of  fine  gold  in  our 
coin.  In  the  sixth  is  shown  the  value  as  paid  at  the  mint 
after  the  uniform  deduction  of  one-half  of  one  per  cent.  The 
former  is  the  value  for  any  other  purposes  than  recoinage, 
and  especially  for  the  purpose  of  comparison ;  the  latter  is 
the  value  in  exchange  for  our  coins  at  the  mint. 

For  the  silver  there  is  no  fixed  legal  valuation,  the  law 
providing  for  changing  the  price  according  to  the  condition 
of  demand  and  supply.  The  present  price  of  standard  silver 
is  122?  cents  per  ounce,  at  which  rate  the  values  in  the  fifth 
column  of  the  second  table  are  calculated.  In  a  few  cases, 
where  the  coins  could  not  be  procured,  the  data  are  assumed 
from  the  legal  rates,  and  so  stated. 

The  silver  purchased  for  coinage  will  be  paid  for  in  silver 
coins  of  the  United  States,  of  less  denomination  than  the  dol- 
lar ;  fine  silver,  136i  cents  per  ounce ;  American  plate,  usual 
manufacture,  120  to  122  cents  per  ounce;  genuine  British 
plate,  125.8  cents  per  ounce. 


VALUE    OF   FOREIGN    COINS. 


77 


FOREIGN  GOLD   COINS. 


Anstralia 

Austria 

Belgtnm 

Bolivia 

Brazil 

Central  America 
Chili 

Denmark 

Ecuador 

England 

Xtence. 

Ckrmany,  North 


Germany,  South 

Greece 

Hiudostan 

Italy  

Japan  

Mexico 

Naples 

Netherlands 

New  Granada  ... 

Pern 

Portugal 

Prussia 

Rome 

Russia 

Spain 

Sweden 

Tunia 

Turkey 

Tuscany 


DSNOUIKATIOK. 


Pound  of  1852 

Sovereign  of  1865-60 

Ducat 

Souverain 

New  Union  crown  (assumed) 

Twenty-five  francs 

Doubloon 

Twenty  milreis 

Two  escudos 

Old  doubloon 

Ten  pesos 

Ten  thaler 

Four  escudos 

Pound  or  sovereign,  new 

Pound  or  sovereign,  average 

Twenty  francs,  new 

Twenty  francs,  average 

Ten  thaler 

Ten  thaler,  Prussian 

Krone  (crown) 

Ducat 

Twenty  drachms 

Mohur 

Twenty  lire 

Old  cobang 

New  cobang 

Doubloou,  average 

Doubloon,  new 

Six  ducati,  new , 

Ten  guilders 

Old  doubloon,  Bogota 

Old  doubloon,  Popayan 

Ten  pesos,  new 

Old  doubloon 

Twenty  soles 

Gold  crown 

New  Union  crown  (assumed) 
Two-and-a-half  scudi,  new ... 

Five  roubles 

One  hundred  reals 

Eighty  reals 

Ducat 

Twenty-five  piastres 

One  hundred  piastres 

Sequin , 


Weight. 

Fineness. 

Value. 

Oi.    Dec. 

Thons. 

0.281 

916.5 

$5.32.37 

0.256.5 

916 

4.85.58 

0.112 

986 

2.28.28 

0.363 

900 

6.75.35 

0.357 

900 

6.64.19 

0.254 

899 

4.72.03 

0.867 

870 

15.59.25 

0.575 

917.6 

10.90.67 

0.209 

863.5 

3.68.75 

0.867 

870 

15.59.26 

0.492 

900 

9.15.35 

0.427 

895 

7.90.01 

0.433 

844 

7.56.46 

0.256.7 

916.6 

4.86.34 

0.256.2 

916 

4-84.92 

0.207.6 

899.5 

3.85.83 

0.207 

899 

3.84.69 

0.427 

896 

7.90.01 

0.427 

903 

7.97.07 

0.357 

900 

6.64.20 

0.112 

986 

2.28.28 

0.185 

900 

3.44.19 

0.374 

916 

7.08.18 

0.207 

898 

3.84.26 

0.362 

568 

4.44.0 

0.289 

572 

3.57.6 

0.867.5 

866 

15.62.98 

0.867.5 

870.5 

15.61.05 

0.245 

996 

5.04.43 

0.215 

899 

3.99.56 

0.868 

870 

15.61.06 

0.867 

858 

16.37.75 

0.525 

891.5 

9.67.51 

0.867 

868 

16.55.67 

1.035 

898 

19.21.8 

0.308 

912 

5.80.66 

0.357 

900 

6.64.19 

0.140 

900 

2.60.47 

0.210 

916 

3.97.64 

0.268 

896 

4.96.39 

0.215 

869.6 

3.86.44 

0.111 

975 

2.23.72 

0.161 

900 

2.99.54 

0.231 

916 

4.36.93 

0.112 

999 

2.31.29 

Value 
after  De- 
duction of 
14  per  ct. 


Price  paid 
at  Mint. 

$5.29.71 
4.83.16 
2.27.04 
6.71.98 
6.60.87 
4.69.67 
16.51.46 
10.85.12 
3.66.91 
15.51.47 
9.10.78 
7.S6.06 
7.51.69 
4.83.91 
4.82.50 
3.83.91 
3.82.77 
7.86.06 
7.93.  ■H) 
6.60.8!? 
2.27.14 
3.42.47 
7.04.04 
3.82.34 
4.41.8 
3.55.8 
15.45.22 
15.53.25 
5.01.91 
3.97.57 
15.,'i3.26 
15.30.07 
9.62.6S 
15.47.90 
19.12.2 
5.77.76 
6.60.87 
2.59.17 
3.95.C8 
4.93.91 
3.84.51 
2.22.61 
2.98.05 
4.34.75 
2.30.14 


7* 


78 


VALUE    OF   FOREIGN   COINS. 


FOREIGN   SILVER  COINS. 


Austria 

u 
u 

Belgium 

Bolivia 

Brazil 

Canada 

Central  America. 
Chili 

Denmark 

England 

France 

Germany,  North. 

Germany,  South. 

Greece 

Ilindostan -. 

Japan 

Mexico 

Naples 

Netherlands 

Norway  

New  Granada 

Peru 

Prussia 

Rome 

Russia 

Sardinia 

Spain. 

Sweden 

Switzerland 

Tunis  

Turkey 

Tuscany 


DENOMINATION. 


Old  rix  dollar 

Old  scudo 

Florin  before  1858 

New  florin 

New  Union  dollar 

Maria  Theresa  dollar,  1780 

Five  francs 

New  dollar 

Half  dollar 

Double  niilreis 

Twenty  cents 

Dollar 

Old  dollar 

New  dollar 

Two  rigsdaler 

Shilling,  new 

Shilling,  average 

Five  franc,  average 

Thaler,  before  1S67 

New  thaler 

Florin,  before  1857 

New  florin  (assumed) 

Five  drachms , 

Rupee 

Itzebu 

New  Itzebu 

Dollar,  new 

Dollar,  average 

Scudo  

Two-and-a-half  gnild. 

Specie  daler 

Dollar  of  1857 

Old  dollar 

Dollar  of  1868 

Half-dollar,  1835-38 

Thaler  before  1857. 

New  thaler 

Scudo  

Rouble 

Five  lire 

New  pistareen 

Rix  dollar 

Two  francs 

Five  piastres 

Twenty  piastres 

Florin 


Weigbt. 


Oi.  Dec. 

0.002 

0.836 

0.451 

0.397 

0.596 

0.895 

0.803 

0.643 

0.432 

0.820 

0.160 

0.866 

0.864 

0.801 

0.927 

0.182.5 

0.178 

0.800 

0.712 

0.595 

0.340 

0..340 

0.719 

0.374 

0.279 

0.279 

0.867.6 

0.866 

0.844 

0.804 

0.927 

0.803 

0.866 

0.766 

0.433 

0.712 

0.595 

0.864 

0.667 

0.800 

0.1C6 

1.092 

0.323 

0.511 

0.770 

0.220 


Tboas. 
833 
902 
833 
900 
900 
838 
897 
903.6 
667 
918.5 
926 
850 
908 
900.5 
877 
924.5 
925 
900 
760 
900 
900 
900 
900 
916 
991 
890 
903 
901 
830 
944 
877 
896 
901 
909 
650 
750 
900 
900 
875 
900 
899 
750 
899 
898.5 
830 
925 


fl  .02.27 

1.02.64 

51.14 

48.63 

73.01 

1.02.12 

98.04 

79.07 

39.22 

1.02.63 

18.87 

1.00.19 

1.06.79 

98.17 

1.10.65 

22.96 

22.41 

98.00 

72.67 

72.S9 

41.65 

41.65 

8S.(i8 

46.62 

37.aJ 

33.S0 

1.06.62 

1.06.20 

95.:34 

l.o.■^..^l 

1.10.65 
97.92 

1.06.20 
94.77 
3f.:51 
72.68 
72.89 

1.05.84 
79.44 
98.00 
20.31 

1.11.48 
39.52 
6-'.  IS 
86.98 
27.C0 


MONEY    OF    GREAT    BRITAIN.  79 


GREAT  BRITAIN. 

MONEY. 

4  Farthings  =  1  Penny,  d. 
12  pence  =  1  Shilling,  s. 
20  shillings    =  1  Pound,       £. 

137.  The  Gold  coins  are  the  sovereign,  which  represents 
the  pound,  and  the  half-sovereign.  The  guinea,  of  21  shil- 
lings, and  its  subdivisions,  have  not  been  coined  since  1816. 
The  standard  for  gold  is  11  parts  fine  gold  and  1  part  alloy. 
The  sovereign  weighs  123^|i  grains,  and  contains  llSg^g 
or  113.001  grains  pure  gold. 

The  Silver  coins  are  crowns  of  5s.,  half-crowns,  florins  of 
2s.,  shillings,  the  Qd.,  the  4:d.  or  groats,  and  3<:/.  pieces.  The 
shilling  weighs  87 y\  grains,  and  contains  80y^y  grains  pure 
silver. 

The  Copper  coins  are  the  penny,  half-penny,  and  farthing, 
coined  at  the  rate  of  24  pence  per  pound  avoirdupois. 

138.  Banh-of-England  Notes  are  a  legal  tender  for  any 
sum  over  £5 ;  silver  is  not  a  legal  tender  over  40s. ;  copper, 
for  not  more  than  12d.  in  pennies  or  half-pennies;  or  6t/.,  in 
farthings. 

139.  £  is  a  contraction  of  librse,  s.  of  solidi,  d.  of  denarii, 
and  q.  of  quadrantes;  farthing  is  another  word  for  four- 
thing. 

In  accounts,  a  straight  line  is  written  between  shillings  and 
pence  when  both  are  mentioned :  thus,  2/6  for  2s.  6d. 

The  word  sterling  is  supposed  to  be  derived  from  the  first 
coiners  of  English  silver,  who  came  into  England  from  Ger- 
many in  the  reign  of  Richard  I.,  and  were  called  Easterlings. 
It  is  used  to  distinguish  the  currency  of  Great  Britain  from 
that  of  the  Colonies,  and  from  some  continental  money  bear- 
ing; the  same  denominations. 


80  ENGLISH   WEIGHTS   AND   MEASURES. 

140.  Intrinsic  par  value  of  £1  =  $4,866;  U.S.  Custom- 
House  value,  £1  =  $4.84.  Freight  bills  are  paid  at  the  rate 
of  S-1.80  per  £1.     In  British  America,  £1  =  $4, 

The  English  mint  price  of  gold  is  £3  17s.  10  Jt?.  for  standard 
gold,  or  |A  fine.  The  mint  price  of  silver  is  5s.  per  ounce  for 
standard  silver,  or  |J  fine. 

141.  The  average  yearly  loss  on  the  wear  of  gold  is  esti- 
mated at  1  in  950,  and  of  silver  1  in  200. 

WEIGHTS   AND   MEASURES. 

142.  Before  1826,  the  chief  of  the  measures  of  capacity 
agreeing  with  those  of  the  United  States,  were  the  wine  gallon 
of  2-31  cubic  inches,  the  beer  gallon  of  282  cubic  inches,  and 
the  Winchester  bushel  of  2150.42  cubic  inches. 

143.  By  act  of  Parliament,  which  came  into  operation 
January  1,  1826,  certain  weights  and  measures,  under  the 
name  of  Imperial  Weights  and  Measures,  were  declared  to 
be  the  only  lawful  ones  in  the  United  Kingdom. 

144.  By  this  act,  the  imperial  gallon,  both  Liquid  and  Dry 
Measure,  contains  277.274  cubic  inches,  or  10  lbs.  avoirdu- 
pois distilled  water,  the  temperature  .32°,  barometer  30  inchc". 
The  imperial  bushel  contains  2218.192  cubic  inches,  or  8  im- 
perial gallons;  8  bus.  =  1  quarter;  10  qrs.  :=  1  last. 

100  Imperial  Bushels  =  103.15  Winchester  bushels. 
100  Winchester  "       =    96.94  Imperial  " 

5  Imperial  Gallons  nearly  equal  6  Wine  Gallons. 
59  "  "        60  Ale  <' 

144  lbs.  Avoirdupois  =  175  lbs.  Troy. 
192  oz.  "  =  175  oz.      " 

145.  The  standard  avoirdupois  pound  of  the  United  States 
and  the  imperial  pound  avoirdupois  are  alike. 

The  Troy  pound  =  22.815689  cubic  inches  distilled  water 
The  linear,  superficial,  and  cubic  measures  are  the  same  in  Eng- 
land as  in  the  United  States.     (See  Comparative  Tables.) 


FRENCH    METRIC   SYSTEM.  81 


FRANCE. 

146.  The  Decimal  or  Metric  System  of  moneys, 
•weights,  and  measures  is  now  established  in  France,  and  has 
been  adopted,  to  a  greater  or  less  extent,  in  Belgium,  Spain, 
Portugal,  Holland,  Switzerland,  Sweden,  Austria,  Turkey, 
Brazil,  and  several  other  countries. 

147.  MM.  Delambre  and  Mechain  estimated  the  length 
of  the  meridian  from  the  Equator  to  the  Pole  by  the  measure- 
ment of  an  arc  between  Dunkirk  and  Barcelona,  and  the 
ten-millionth  part  of  this  meridian,  or  one- fourth  of  the  cir- 
cumference of  the  earth,  was  taken  as  the  unit  of  length,  and 
is  termed  a  Metre. 

148.  The  square  of  10  metres  is  the  unit  of  surface  mea- 
sure, and  is  called  an  Are  (pronounced  air). 

149.  The  cube  of  the  tenth  part  of  a  metre  is  the  unit  of 
capacity  for  either  Liquid  or  Dry  Measure,  and  is  called  a 
liitre  (pronounced  le^-tur). 

150.  A  kil'olitre,  the  cube  of  a  metre,  is  the  unit  of  Solid 
Measure,  and  is  known  as  the  Stere. 

151.  A  Gramme  is  the  weight  of  a  quantity  of  water,  at 
32°  Fahr.  (the  temperature  of  melting  ice),  contained  in  a 
cube  of  the  one-hundredth  part  of  a  metre. 

152.  The  names  of  the  multiples  of  these  integers  are  de- 
rived from  the  Greek,  and  those  of  the  divisions  from  the 
Latin  language. 

Deca    signifies      10  times.  Deci,   the     10th  part. 

Hecto       "  100     "  Centi,  »«     100th     «' 

Kilo  ««        1000     "  Mille,    "  1000th    " 

Myria       "      10000     " 

MONEY. 

10  Centimes  =  1  Decime. 

10  Decimes,  or  100  Centimes  =  1  Franc. 


82  WEIGHTS   AND   MEASURES   OF   FRANCE. 

153.  The  French  coin  is  based  upon  the  unit  of  weight, — 
the  gramme. 

154:.  Silver  is  the  legal  standard  of  value  in  France.  The 
franc  in  silver  is  valued  at  9.384  pence  sterling.  The  value 
of  the  franc  in  gold  is  9.516  pence  sterling,  giving  fr.25.22 
for  £1  sterling.  The  United  States  Custom-House  valua- 
tion of  the  franc  is  18.6  cts.;  United  States  Mint  price, 
19.6  cts. 

155.  The  mint  standard  for  both  gold  and  silver  is  -^^  pure 
and  j'^  alloy.  The  gold  coins  are  the  napoleon,  of  20  francs, 
and  the  100,  50,  10,  and  5  franc  pieces. 

A  kilogramme  of  standard  gold  is  coined  into  155  twenty- 
franc  pieces. 

The  silver  coins  are  the  silver  napoleon,  of  5  francs,  and 
the  2,  1,  J,  and  \  franc  pieces. 

The  copper  or  bronze  pieces  are  10,  5,  2,  and  1  centimes, 
weighing,  respectively,  10,  5,  2,  and  1  grammes. 

156.  Accounts  were  formerly  kept  in  livres  tournoise,  with 
its  subdivisions  of  the  sou  and  denier.  12  deniers  =  1  sou  or 
sol,  20  sous  =  1  livre  tournoise,  24  livres  =  1  louis-d'orj  3 
livres  =  1  ecu  or  crown,  81  livres  =  80  francs. 

WEIGHTS. 

Gramme  =  15.432349  grains  Troy. 

The  kilogramme  (1000  grammes)  is  the  weight  most  fre- 
quently used  in  commerce,  and  is  equal  to  2.679227  lbs.  (2  lbs. 
8  oz.  3  dwt.)  Troy;  or,  2.204621  lbs.  (2  lbs.  3  oz.  4.652  dr.) 
avoirdupois.     A  kilogramme  is  generally  taken  as  2^  lbs. 

378J  grammes  =:  1  lb.  Troy.     453|  grammes  =  1  lb.  avoirdupois. 
1  cwt.  =  50.80234  kilogrammes. 
100  myriogrammes  =  1  ton,  20^  lbs. 
1  quintal  m^trique  =  100  kilogrammes. 

Note. — At  the  U.  S.  Post-Oflace,  15  grammes  are  taken  as  j^  oi. 


WEIGHTS   AND   MEASURES   OF   FRANCE.  83 


MEASURES   OP  LENGTH. 

1  METRE        :=  39.371  English  inches. 
1  decimetres    3.9371     "  " 

1  kilometre  =   0.62138  miles. 
1  Eng.  mile=    1.609036  kilometres. 

Old  Measure. — 1  aune  =  IJ  yds.     1  brace  =  f  yds. 


MEASURES   OP   SURFACE. 

1  ARE  =  a  square  decametre  =  119.6046  sq.  yds. 

1  centiare    =  10.76441  sq.  ft. 
1       "  =    1.196046  sq.  yds. 

1  hectare    =  2  acres,  1  rood,  35  perches. 
1  acre,  Eng.=  .40466  liectares. 
100  sq.  ft.        =  9.28987  sq.  metres. 


MEASURES   OP   CAPACITY. 

1  LiTEB  =  61.02803  cubic  inches. 

1    "  =   2.1135  wine  pints,  or  1.7608  imperial  pints,  or  908 

qts.  dry  measure. 
1  hectolitre   =   3.53171  cubic  ft.  =  22.01  imperial  gals.,  or  26.419 

wine  gals.,  or  2.889  Winchester  bus. 


MEASURES   OP   SOLIDITY. 

1  STEBK  or  kilolitre  =  35.31714  cubic  feet  =  .2759  cord. 
1      "  =    1.308042  "      yds. 

100  cubic  inches  =  16.38592     "      centimetres. 

157.  The  terms  of  the  Metric  System  are  now  generally 
used  by  scientific  men.  Congress,  by  act  of  July  27,  1866, 
made  it  lawful  in  contracts  and  in  legal  proceedings  to  employ 
the  weights  and  measures  of  the  Metric  System ;  and  Great 
Britain,  in  1864,  passed  an  act  authorizing  its  use. 


84  FOREIGN   MONEYS   OF   ACCOUNT. 

SYNOPSIS  OF 

FOREIGN  MONEYS  OF  ACCOUNT- 

Money  at 
Amsterdam,  5  cents  =  1  stiver,  20  stivers  := 

1  guilder  or  florin. 
Berlin,  30  silver  groschen  =  1  thaler. 
Bremen,  5  scliwaren  =  1  grote,  72  grotes  = 

1  rix-daler,  5  rix-dalers  =  1  louis-d'or. 
Calcutta,  12  pies  =  1  anna,  16  annas  =z  1  rupee. 
Christiania,  120skilling=3l  specie-daler. 

1  banco  rix-dollar  =  .39|. 
Constantinople,  40paras=l  piastre,  100  pias- 
tres =  1  medjidie. 
Copenhagen,  96  skilling  =  1  rigsbank  daler. 

1  banco  rix-dollar  =  .55. 
Frankfort,  60  kreutzer  =  1  ZoUverein  florin 

or  guilder. 
Genoa,  100  centesimi  =  1  lira  Italiana. 
Hamburg,  12  pfenning  =  1  schilling,  16  schil- 
ling =  1  mark. 
Lisbon,  1000  reis  =  1  milreis. 
London,  240  pence  =  12  shillings  =  1  pound. 
Madrid,  34  maravedis  =  1  real,  20  reals  =  1 

duro.  1  duro  =  1.00 

Naples,  10  grani  =  1  carlino,  10  carlini  =  1 

ducat.  1  ducat         =    .80 

New  York,  100  cents  =  1  dollar. 

Palermo,  20  grani  =  1  taro,  30  tari  =  1  onza.   1  onza  =  2.40 

Paris,  100  centimes  =  1  franc.  1  frano         =    -^^A 

Pekin,  1  tael  =  10  mace  =  100  candareens  = 

1000  cash.  1  tael  =1.48 

Rio  de  Janeiro,  1000  reis  =  1  milreis.  1  milreis      ^    .83 J 

Rome,   10  bajocchi  ^  1  paolo,  10  paoli  =  1 

scudo  Romano.  1  s.  Romant)  =    .99J 

St.  Petersburg,  100  copeck  =  1  silver  rouble.   1  s.  rouble   =    .75 
Stockholm,    12    runstyken  =  1    skilling,   48 

skillingar  =  1  daler  in  banco.  1  daler  =  1.06 

Venice,  100  centesimi  =  1  lira  Austriaca,  8 

lire  Austriache  =  1  florin  Austriaco.  1  lira  =   .16 

Vienna,  100  kreutzer  =  1  gulden  or  florin.        1  florin         =    .48J 


DoUs.  Ctfc 

1  florin 
1  thalei 

=    .40 
=    .69 

1  8.  daler 
1  rupee 
1  8.  daler 

=    .79J 
=    .44J 
=  1.06 

1  medjidie 
1  8.  daler 

=  8.35 
=  1.05 

1  florin 
1  lira 

=   .40 
=   .18^ 

1  m.  banco 
1  milreis 
1  pound 

=   .35J 
=  1.12 
=  4.86 

FOREIGN   WEIGHTS    AND   MEASURES. 


85 


COMPARATIVE  TABLES   OP  WEIGHTS   AND   MEASURES. 
1  Imperial  Gallon  =  277.274  cubic  inclies  =  1.2  Wiue  Gallons. 
Wine  Measure,  1  quart =57f        "  1  gall.  =231  cubic  inches. 


Dry 

<< 

1     ' 

'     =67  J 

<< 

1    «' 

=  268 

Beer 

<< 

1     « 

♦     =70^ 

« 

1    " 

=  282 

Ip^TjoS'  weight,  }l  P«u.d  =  67C0  grain. 
Avoirdupois  "  1      "      =7000      " 

175  lbs.  Troy  =  144  lbs.  Avoirdupois. 

Dry  Measure,  1  Bushel  of  U.  S.  (Winchester  bu.)  =:2150.42  cub.  in. 
"  1  Imperial  Bushel  of  Great  Britain  =  2218.192       " 

"  1  Bushel  U.  S.  heaped  measure       =2747.7167     " 


FOREiaN  WEIGHTS  AND  MEASURES 

FREQUENTLY   MET  WITH  IN  REPORTS   OP   MARKETS. 


Ahm,  in  Rotterdam  .         (nearly) 

Almude,  in  Portugal    . 
Almude,  in  Madeira 
Alquiere,  in  Madeira  . 
"         in  Bahia 
"         in  Maranham 
'*         in  Rio  Janeiro 
"         in  Pernambuco     .         . 
Anna  of  rice,  in  Ceylon    • 
Arroba,  in  Portugal     . 
"       in  Spain 

'*       of  wine,  in  Spain  (large) 
"  "  ««     (small) 

Arroba,  in  Malaga 
Arsheen,  in  Russia 
Bahar,  in  Batavia  (large)    . 

"  "         (small) 

Bale  of  cinnamon,  in  Ceylon  (net) 
Barilla,  in  Naples    .         .        . 
Cantar,  in  the  Levant  . 

"        of  oil,  in  Leghorn 
"        of  brandy      «« 
"        in  Malta 
'*         (grosso)  in  Naples 
"        (piccolo)         "    . 
"        (grosso)  in  Sicily    . 
"        (sottile)  " 

Carro,  in  Naples 

"      of  wine,  in  Naples 

8 


40  gallons. 
4.37  " 

4.  to  8  gallons. 
If  to  2  pecks. 
1  bushel. 

H   " 

1  to  IJ  bushels. 

I  to  1}      " 
260.4  lbs. 
82         " 
25        " 
4.246  gallons. 
3.34        « 

41  It 

28  inches. 
4J  piculs. 
3 
104|  lbs. 

II  gallons. 
118.8  lbs. 
88        «« 
120       " 
174J     «« 
196|     " 
106       « 
192J     " 
175       «« 
52.2  bushels. 
264  gallons. 


86 


FOREIGN   WEIGHTS   AND   MEASURES. 


Catta  of  tea,  in  China           .... 

IJ  lbs. 

Cayang  of  rice,  in  Batavia 

.      3581  lbs. 

Chetwert,  in  Russia 

5.95  bushels. 

Fanega,  in  Spain 

.      1.6 

Hectolitre,  in  France  .         .         .       2.84  bus. 

or  26.42  gallons 

Kilogramme,  in  France  and  Netherlands     . 

21  lbs. 

Last  of  grain,  in  Amsterdam    . 

.      85^  " 

"             "       in  Bremen     .... 

80|" 

"     of  salt,  in  Cadiz        .... 

75i  bushels. 

"     or  moyo  of  salt,  in  Portugal 

70 

"     of  grain,  in  Dantzic  (nearly)    . 

.      93 

"             "       in  Flushing    .... 

92J       " 

"            "      in  Hamburg 

89.7     " 

"            "      in  Lubeck       .... 

91         " 

"             "       in  Rotterdam     . 

.      85t\    " 

"    in  Sweden    ...... 

75^^    " 

"     Utrecht              

.      69+     " 

Lispound,  in  Hamburg        .... 

14  lbs. 

Mark,  in  Holland 

9  ounces. 

Maund  (factory),  in  Calcutta 

74|  lbs. 

"        (bazaar),  10%  heaTier 

.      82.4  " 

Mina  of  grain,  in  Genoa      .... 

3.43  bushels. 

Moyo,  of  Lisbon 

23-1-       " 

"       in  Oporto 

30 

Oke,  in  Smyrna 

2.83  lbs. 

Orna  (or  eimer)  of  wine,  in  Trieste 

14.94  gallons. 

"       of  oil                                  '» 

17 

Palmo,  in  Naples          ..... 

lOJ  inches. 

Picul,  in  Batavia  and  Madras 

136  lbs. 

"      in  China  and  Japan  .... 

133J  «« 

Pipe  of  wine,  in  Spain     .... 

160+  gallons. 

Pood,  in  Russia  ...... 

36  lbs.  1  oz.  10  drs 

Quintal,  in  Portugal         .         .         . 

89.05  lbs. 

"         in  Smyrna      . 

127.2      " 

"         (of  4  arrobas),  in  Spain 

100 

"        in  Turkey       

124J       " 

"        of  cotton  (45  okes),  in  Turkey 

127.3      '« 

Rottolo,  in  Portugal 

12J 

Rottolo,  in  Genoa 

24 

"        in  Leghorn     

3 

Salma  of  grain,  t^  Sicily          .         .         .         . 

9.77  bushels. 

'«      (general)          "          .... 

7.85       " 

"      of  wine             "     . 

23.06  gallons. 

Scheffel,  in  Germany 

1.^  to  3  bushels. 

Ship  pound,  in  Denmark 

352  lbs. 

'•         "         in  Hamburg     .... 

299J  " 

Staro  (or  stajo),  in  Trieste 

2.34  +  bushels. 

Tale,  in  China 

1^  ounces. 

Vara,  in  Rio  Janeiro        .         .     (nearly) 

if  yards. 

"      in  Spain 

9\      " 

EXCHANGE.  87 


EXCHANGE. 

158.  The  term  Exchange,  in  commerce,  signifies  the  giving 
or  receiving  of  one  currency  for  its  value  in  another;  or,  the 
method  of  making  payments  hy  means  of  written  orders 
without  the  transmission  of  money.  See  Bills  op  Ex- 
change. 

159.  Exchange  is  of  two  kinds,  Domestic  or  Inland,  and 
Foreign. 

160.  Domestic  Exchange  includes  the  exchanges  made 
within  the  limits  of  one  country. 

161.  Foreign  Exchange  relates  to  the  transactions  be- 
tween different  countries. 

Foreign  Exchange  comprises  Nominal  Exchange  and  Real 
Exchange. 

162.  Nominal  Exchange  has  reference  to  the  compara- 
tive market  value  of  the  currencies  of  different  countries. 

163.  Real  Exchange  is  that  which  relates  to  the  inter- 
change of  commodities  without  reference  to  the  precious 
metals. 

164.  The  True  or  Intrinsic  Par  of  Exchange  be- 
tween two  countries  is  the  exact  equivalent  of  pure  metal  in 
the  coined  piece  which  forms  the  unit  of  price  of  one  country 
compared  with  the  currency  of  the  other.  The  alloy  is 
reckoned  of  no  value. 

165.  "  Thus,  according  to  tke  mint  regulations  of  Great  Britain 
and  France,  £1  sterling  is  equal  to  25  fr.  20  cent.,  which  is  said 
to  be  the  par  between  London  and  Paris.  Exchange  between  the 
two  countries  is  said  to  be  at  par  when  bills  are  negotiated  at  this 
rate;  that  is,  when  a  bill  for  £100  drawn  in  London  is  worth  2520 
francs  in  Paris,  and  conversely.  When  £1  in  London  buys  a  bill 
on  Paris  for  more  than  25  fr.  20  cent.,  the  exchange  is  said  to  be  in 
favor  of  London  and  against  Paris;    when  £1  in  London  will  not 


88  DOMESTIC   EXCHANGE. 

buj  a  bill  on  Paris  for  25  fr.  20  cent.,  exchange  is  against  London 
and  in  favor  of  Paris. 

166.  "  Exchange  is  made  to  diverge  from  par  by  anj  discrepancy 
between  the  actual  weight  or  fineness  of  the  coins  and  the  mint 
standard,  and  by  the  variations  in  the  demand  and  supply  of  bills 
of  exchange. 

"  The  cost  of  conveying  bullion  or  coin  forms  the  limit  within 
which  the  rise  and  fall  of  real  exchange  is  confined ;  for  if  a  mer- 
chant can  send  a  bill  for  less  than  the  expense  of  sending  gold,  he 
will  send  a  bill,  but  if  sending  a  bill  would  cost  more  than  the  ex- 
pense and  risk  of  sending  gold,  then  he  will  send  gold." 

167.  The  Commercial  Par  of  Excbange  is  the  market 
value  of  the  currency  of  one  country  when  sold  for  the  cur- 
rency of  another. 

168.  The  Coarse  or  Rate  of  Exchange  is  the  current 
prices  of  exchanges,  or  the  variable  price  of  the  money  of 
one  country  which  is  paid  for  a  fixed  amount  of  that  of  an- 
other country. 

DOMESTIC  EXCHANGE. 

169.  The  calculations  connected  with  Domestic  Exchange 
require  only  the  ordinary  applications  of  Percentage. 

EXAMPLES. 

1.  What  is  the  cost  of  a  hill  for  $240  on  New  York,  pur- 
chased at  li^  premium?  Ans.  S243. 

2.  What  is  the  cost  of  a  draft  on  New  Orleans  for  $1800, 
at  If  ^  premium? 

3.  8old  $375  uncurrent  money  at  2.\ffc  discount.  How 
much  did  I  receive?     How  much  did  I  lose? 

4r.  Exchanged  $600  in  bank  notes  for  gold  at  5^^  premium. 
How  much  did  I  receive  ? 

5.  Bought  goods,  $1250,  and  sold  them  at  a  profit  of  25^  ; 
purchased  a  draft  on  St.  Louis,  with  the  proceeds,  at  a  dis- 
count of  f  ^.     What  was  the  amount  of  the  draft? 

6.  Shipped  goods  to  Havana,  and  received  a  draft  for  82500. 
which  gave  me  a  profit  of  20%  ;  sold  the  draft  at  4h  %  pre- 
mium.    How  much  did  I  gain  by  both  transactions  ? 


QUOTATIONS    OF   EXCHANGE.  89 

7.  A  commission  merchant  sold  goods,  the  net  proceeds  of 
which  were  $2750.  How  large  a  draft  can  he  buy  to  remit 
to  his  consignor,  if  he  pays  ^  ^  premium  for  the  draft?  How 
large  a  draft  if  he  purchases  at  |  ^  discount  ? 

FOREIGN  EXCHANGE. 

170.  In  Foreign  Exchange  it  is  usual  to  reckon  the  money 
of  one  country  as  fixed,  and  the  other  as  variable.  The 
country  whose  money  is  calculated  at  a  fixed  price  is  said  to 
receive  the  variable  price,  while  the  other  country  is  said  to 
give  the  variable  price.  Thus,  if  I  buy  a  bill  of  exchange 
on  Paris,  I  receive  so  many  francs  per  dollar, — the  dollar  is 
the  fixed  price,  and  the  francs  the  variable  price.  If  I  buy 
a  bill  on  Hamburg,  I  pay  so  many  cents  per  marc  banco ; 
the  marc  banco  is  called  the  fixed  price,  and  the  cents  the 
variable  price.  In  quotations  of  exchange  rates,  it  is  usual 
to  give  only  the  variable  prices. 

171.  Nearly  all  the  bills  of  exchange  drawn  in  this  coun- 
try are  drawn  and  negotiated  on  one  of  the  following  places : 
viz.,  London,  Paris,  Bremen,  Hamburg,  Cologne,  Leipsic, 
Frankfort,  and  Amsterdam. 

QUOTATION  OF  FOREIGN  BILLS  OF  EXCHANGE, 
By  Deexel  &  Co.,  Bankers,  Philada.,  June  1,  1866. 

Explanation. 

Premium  (on  old  par  of  4.44J),  from  9  to 

9|  per  cent,  on  bills  at  60  days'  sijjlit. 

Premium  from  9f  to  10^  per  cent,  on  liills 

at  3  days'  sight. 
At  5  francs,  11  centimes  per  dollar. 
"  5     "  8        "  "        " 

"  80   cents  per  rix-dollar. 
"  37       "        "   marc  banco. 
"  73J     "        "   thaler. 
"  74      " 

"  42       "        "   guilder  or  florin. 
From  42  to  42J  cts.  per  guilder. 
See,  also,  London  Coubse  of  Exchange. 

172.  Bills  of  exchange  are  drawn  in  the  money  of  the 
country  in  which  they  are  made  payable.  (See  Forms  of 
Bills  of  Exchange.) 

8* 


Exchange. 

London, 

60  days 

109    @109i 

« 

3    " 

\m  @  llOi 

Paris, 

60    " 

5.11 

" 

3    " 

6.08 

Bremen, 

60    " 

.80 

Hamburg, 

60    « 

.37 

Cologne, 

60    " 

.73i 

Leipsic, 

60    " 

.74 

Frankfort, 

60    " 

.42 

Amsterdam 

,   60    « 

.42  @  .42f 

90  PAR   OF   STERLING   EXCHANGE. 

Exchange  on  England. 

173.  By  the  usage  of  bankers  for  ages,  the  pound  sterling 
has  been  valued  by  the  old  Spanish  Carolus  pillar  dollar,  now 
entirely  out  of  circulation  in  Europe  and  America;  of  these, 
84.44^  were  equivalent  to  the  pound  sterling. 

This  rate  originally  represented  the  true  par  of  exchange 
between  the  two  countries.  In  1834  the  eagle  was  reduced 
in  weight  to  258  grains  (see  Tables  of  Coins  op  U.  S.), 
and  now  contains  232.2  grains  pure  gold. 

The  Engli.sh  sovereign  is  the  coined  piece  of  which  the 

pound  sterling  is  the  money  of  account,  and  contains  118.001 

grains  pure  gold. 

Standard  weight  of  sovereign,  grains         123.274 
Alloy,  yV  part 10.273 

Fine  gold  in  the  sovereign     .         .         .     113.001 

By  the  proportion — 

232.2  grains  :  113.001  grains  : :  810, 
we  find  that  the  equivalent  of  the  pound  sterling  is  $4.8665 ; 
and,  allowing  for  the  wear  of  coin,  we  have  84.84.  the  value 
established  by  Congress  in  1842,  and  the  rate  at  which  duties 
are  estimated  in  the  Custom-Houses. 

It  has  been  found  convenient  to  retain  the  old  value  as  the 
basis  of  exchange,  and  to  express  the  present  exchangeable 
value  by  a  jjrcmi'um  on  this  basis.  It  requires  the  addition 
of  9^  to  make  the  Custom-House  value,  and  the  addition  of 
about  9i^o  to  equal  the  intrinsic  value,  of  a  pound  sterling  in 
our  currency. 


Old  par  value  of  .£1.     =  $4,444 
9fe  premium,  =      .399 


Old  par  value,  $4.4444 

9j%  premium,  .4222 


Custom-House  value,        $4.8443      Intrinsic  value,  $4.S(JGG 

Exchange  quotations  refer  to  the  old  par.  When,  there- 
fore, exchange  is  quoted  at  about  82%  premium,  there  is  in 
fact  no  real  premium,  but  the  true  par  has  been  attained. 
When  nothing  is  said  to  the  contrary,  the  quotations  are 
for  bills  at  tisance,  or  60  days'  sight  and  3  days  of  grace, 


SHIPMENTS    OF    SPECIE. 


91 


which,  at  6^  interest,  involves  a  loss  of  more  than  1^  be- 
sides the  time  of  transportation.  On  the  other  hand,  1  %  is 
about  the  cost,  including  freight,  insurance,  &c.,  of  shipping 
gold;  and  as  one  of  these  items  balances  the  other,  the  real 
par  of  exchange  on  England  is  91%,  at  which  rate  it  is  as 
well,  or  better,  to  remit  good  60-day  bills  as  specie. 

PRO   FORMA   ACCOUNT    OF   A    SHIPMENT   OF    MEXICAN 
DOLLARS   FROM    NEW   YORK   TO   LONDON. 

10175.00 

7.50 

51.87 


10000  dollars  purchased  in  New  York  at  1|  prem.   , 
Packing  Charges,  Shipping,  &c. 
Insui-ance  at  ^fo  on  10175.00,  and  Policy  $1     . 

Total  cost  in  New  York    . 

Value  in  London,  10000  dollars  weighing  8660  ounces, 
and  sold  at  58J  pence  per  ounce 


$10234.37 


2097 


».  d. 
6  11 


Charges  in  London,  Freight,  Ifo 
Primage,  5^ 

Landing  Charges,  Postage,  &c. 
Brokerage,  i%.  Com.  \(fo  =  %%  = 

Net  Proceeds,  Cash,  in  London 
Add  Interest  for  63  days,  at  4^    . 


£    s.    d. 

5    4  9 

5  2 

13  9 

13     2  2 


19     5  11 

2078     1     0 
14  10  11 


X2092  11  11 
Par  of  £2092  lis.  11^?.  =  89300.43.  This  amount  drawn 
at  60  days'  sight,  to  produce  the  above  $10234.37,  would 
establish  the  rate  of  exchange  on  London  at  110.04  per  cent. 
Gold  is  sometimes  exported  when  exchange  is  quoted  below 
the  true  par,  by  bankers  who  have  branch-houses  and  there- 
fore no  commissions  to  cover,  and  who  insure  their  own  risks  ; 
by  those  who  can  save  a  guaranty  commission  on  commercial 
bills,  and  by  those  who  are  compelled  to  procure  specie. 

Exports  of  Specie  from  New  York  for  the  week  ending  June  2, 18CG, 
to  Liverpool,  Southampton,  Havre,  Bremen,  and  Hamburg. 

Amount  bro't  forward,  $5,021,817 
June  2,  Foreign  Coin  and  Ame- 
rican Gold,  l,179.-!r.8 
"  "  German  Silver,  2,000 
"  "  Mexiciin  "  40.S28 
"  "  Silver  Coin,  20,000 
"  "  American  Gold,  606,83-1 
"     "  Foreign  Coin,  50 

Total  for  the  week,       $6,S70,997 
5,021,817 


M.iy  30,  American  Gold, 

12,715,700 

"      "     French          " 

6,208 

"      "    Spanish         " 

9,492 

"     31,  American     " 

486,000 

June  1,         "             " 

1,645,197 

"  Gold  and  Silver 

bars. 

14,800 

"      "  Sovereigns, 

62.920 

"       2,  Gold  and  Silver 

bars. 

82,600 

92  EXCHANGE   ON   ENGLAND. 

RULES  FOR  COMPUTING  STERLING  EXCHANGE, 

USED    BY    BANKERS    AND    DEALEBS    IN    EXCHANGE. 

174.  The  par  value  of  a  pound  sterling,  $4.44|,  equals  S4^, 
or  ''^  dollars;  and  as  there  are  40  sixpences  in  a  pound,  1 
sixpence  is  equal  to  ^  of  a  dollar.  To  find  the  real  value, 
a  premium  must  be  added. 

175.  To   FIND   THE  VALUE   OF   STERLING  MONET. 

Rule  I. — Reduce  the  pounds  and  shillings  to  sixpences,  hy 
mxdliplying  the  pounds  hy  Jfi  and  the  shillings  hy  2 ;  to  their 
sum  add  1,  if  the  pence  equal  or  exceed  6 ;  divide  hy  9,  and 
to  the  quotient  add  the  given  premium,  and  2  cents  for  every 
penny  exceeding  6  in  the  given  numher  of  pence. 

EXAMPLE. 

1.  What  is  the  value  in  U.  S.  Currency  of  £540  7s.  7d., 
at  a  premium  of  9i  %  ? 


540X40  = 

7X    2=. 
7  =  6  +  1  = 

=     21600 

14 

1 

9)21615 

2401.6666 

21615.0004 
1200.8333 

22.8158337  Premium. 
2401.6666 

Value  of  Id., 

2424.4824337 
2 

$2424.50 

Rule  II. — Reduce  the  j^ounds  and  shillings  to  sixpences^ 
and  to  their  sum  add  i  the  numher  of  pence  ;  then  divide  hy 
9,  and  to  th^  quotient  add  the  given  premium. 


EXCHANaE   ON   ENGLAND.  93 


EXAMPLE   GIVEN    UNDER   RULE   I. 


7_^    6=  1.166 

7X    2=  14 

540  X  40  =      21600 

9)21615.166 


2401.685    Par  value 
9^  per  cent. 


21.615165 
1.200842 


22.816007    Premium. 
2401.685 


Ans.      2424.601 

2.  Keduce  £1872  lis.  5c?.  to  dollars  at  par. 

Ans.  $8322.54. 
»3.  Reduce  £617  Is.  Id.  to  United  States  currency  at  9^ 
premium.  Ans.  $2989.40. 

4.  What  is  the  value  of  £1500  at  8^  premium  ? 

5.  What  will  be  the  cost  of  the  following  bill  of  exchange 
at  8|^  premium? 


£150.  New  York,  June  13,  1866. 

Sixty  days  after  sight  of  this  First  of  Exchange 
(Second  and  Third  of  same  tenor  and  date  unpaid),  pay  to 
the  order  of  R.  J.  Milligan  One  Hundred  and  Fifty  Pounds, 
value  received,  and  charge  the  same  to  account  of 

Brown  &  Bros. 

To  Brown,  Shipley  &  Co., 
Liverpool,  England. 

176.  To  reduce  Federal  money  to  Sterling. 

Rule  I. — Divide  the  given  amount  hy  the  value  of  £1  at 
the  given  premium. 

Rule  II. — Multi-ply  the  given  amount  hy  9,  and  divide  the 
product  hy  Jfi;  annex  two  ciphers  to  the  quotient,  and  divide 
by  100  increased  hy  the  premium. 

examples. 
1.  A  commission  merchant  wishes  to  remit  $7071.57  to 


94 


STERLING   EXCHANGE   TABLE. 


England.     How  large  a  bill  of  exchange  can  lie  purchase  at 
9^  premium? 


7071.57 
9 

1591.1033 

lOO 

40)63644.13 

109)159110.3300 

1591.1033 

1459.7277 
20 

14.5540 
12 

Ans.  £1459  14s.  Q^d. 


6.6480 


2.  What  amount  of  exchange  can  I  buy  for  S3567.60  at 
8J%  premium?  £739  16s.  6d. 

3.  Purchased  a  bill  of  exchange,  at  9|^  premium,  which 
cost  $4275.     How  large  was  the  bill  ? 

4.  How  large  a  bill  of  exchange  can  I  buy  for  $2850,  if  I 
pay  9  ^  ^  premium  ? 

The  cost  of  goods  imported  from  England  is  often  estimated 
by  adding  the  proportion  of  charges  to  the  value  of  the  pound 
or  shilling.     For  example  : — 

An  invoice  amounts  to  £2400,  which,  with 
Exchange  at  9%  premium  = 
Duties,  freight,  and  other  charges,  amount  to 

Making  the  total  co.st 
Then,  if  £2400  cost  $12227,  one  pound  cost 
12227  -T-  2400  =  S5.09^  nearly,  and  1  shilling  costs  25  J  cts., 
1  penny  2i  cts.     Cloth  at  16d  per  yd.  would  cost  33  cents. 

TABLE 

Showing  the  value  of  £1  sterling  from  4  to  12\  per  cent,  premium 
on  the  old  par  of  ^4'44^- 


811626.66 
600.34 

$12227.00 


Old  par 

$4,444 

4  per  cent. 

4.622 

^  «' 

4.644 

5   " 

4.667 

H    " 

4.689 

6   " 

4.711 

6|  «* 

4.733 

7   " 

4.756 

7|  " 

4.767 

7J  " 

4.778 

7|  per  cent.  $4,789 
8fo  (Eng.  fr'ts)  4.800 
8J  per  cent.  4.811 
8|       "  4.822 

8|       »  4.833 

9  (Cust.-House)  4.844 
9 J  per  cent.  4.850 
9|       "  ■  4.856 

9f       ««  4.861 

9|       "  ■     4.867 


9f  per  cent. 


10 

lOi 

10^ 

11 

12 
12J 


$4,872 
4.878 
4.883 
4.889 
4.894 
4.911 
4.933 
4.956 
4.978 
5.000 


EXCHANGE. 


95 


STEELING  TABLE. 
Calculated  at  the  Par  Value  of  ^I^.ltJ^lf.  to  £1  Sterling. 


£ 

$  cts.  m. 

£ 

$  cts.  m. 

£ 

$  cts.  m. 

Sliill'gs. 

$  cts.  m. 

1 

4.44.4 

41 

182.22.2 

81 

360.00.0 

1 

0.22.2 

2 

8.88.9 

42 

186.66.7 

82 

364.44.4 

2 

0.44.4 

3 

13.33.3 

43 

191.11.1 

83 

368.88.9 

3 

0.66.7 

4 

17.77.8 

44 

195,55.6 

84 

373.33.3 

4 

0.88.9 

5 

22.22.2 

45 

200.00.0 

85 

377.77.8 

6 

1.11.1 

6 

26.66.7 

46 

204.44.4 

86 

382.22.2 

6 

1.33.3 

7 

31.11.1 

47 

208.88.9 

87 

386.66.7 

7 

1.55.6 

8 

35.55.6 

48 

213.33.3 

88 

391.11.1 

8 

1.77.8 

9 

40.00.0 

49 

217.77.8 

89 

395.55.6 

9 

2.00.0 

10 

44.44.4 

50 

222.22.2 

90 

400.00.0 

10 

2.22.2 

11 

48.88.9 

51 

226.66.7 

91 

404.44.4 

11 

2.44.4 

12 

53.33.3 

52 

231.11.1 

92 

408.88.9 

12 

2.66.7 

13 

57.77.8 

53 

235.55.6 

93 

413.33.3 

18 

2.88.9 

14 

62.22.2 

54 

240.00.0 

94 

417.77.8 

14 

3.11.1 

15 

66.66.7 

55 

244.44.4 

95 

422.22.2 

15 

3.33.3 

16 

71.11.1 

56 

248.88.9 

96 

426.66.7 

16 

3.55.6 

17 

75.55.6 

57 

253.33.3 

97 

431.11.1 

17 

3.77.8 

18 

80.00.0 

58 

257.77.8 

98 

435.55.6 

18 

4.00.0 

19 

84.44.5 

59 

262.22.2 

99 

440.00.0 

19 

4.22.2 

20 

88.88.9 

60 

266.66.7 

100 

444.44.4 

20 

4.44.4 

Pence. 

$cts.n). 

21 
22 

93.33.3 

97.77.8 

61 
62 

271.11.1 
275.55.6 

200 

888.88.9 

1 

0.01.9 

23 

102.22.2 

63 

280.00.0 

300 

1333.33.3 

2 

0.03.7 

24 

106.66.7 

64 

284.44.4 

400 

1777.77.8 

3 

0.05.6 

25 

111.11.1 

65 

288.88.9 

500 

2222.22.2 

4 

0.07.4 

28 

115.65.6 

66 

293.33.3 

600 

2666.66.7 

5 

0.09.3 

27 

120.00.0 

67 

297.77.8 

700 

3111.11.1 

28 

124.44.4 

68 

302.22.2 

800 

3656.55.6 

6 

0.11.1 

29 

128.88.9 

69 

306.66.7 

900 

4000.00.0 

7 

0.13.0 

30 

133.33.3 

70 

311.11.1 

1000 

4444.44.4 

8 
9 

0.14.8 
0.16.7 

31 

137.77.8 

71 

315.55.6 

1100 

4888.88.9 

10 

0.18.5 

32 

142.22.2 

72 

320.00.0 

1200 

5333.33.3 

33 

146.66.7 

73 

324.44.4 

■1300 

5777.77.8 

11 

0.20.4 

34 

151.11.1 

74 

328.88.9 

1400 

6222.22.2 

12 

OM.?. 

35 

155.55.6 

75 

333.33.3 

1500 

6666.66.7 

36 

160.00.0 

76 

337.77.8 

1600 

7111.11.1 

i 

0.00.5 

37 

164.44.4 

77 

342.22.2 

1700 

7555.55.6 

88 

168.88.9 

78 

346.66.7 

1800 

8000.00.0 

i 

0.00.9 

39 

173.33.3 

79 

351.11.1 

1900 

8444.44.4 

f 

40 

177.77.8 

80 

355.55.6 

2000 

8888.88.9 

0.01.4 

(See,  also,  Importees'  Advance  Table.) 


To  find  the  value  of  any  given  amount  not  mentioned  in  the 
table,  take  the  sum  of  those  numbers  that  will  equal  the  given 
amount. 


96 


EXCHANGE. 


liondon  Coarse  of  Exchango. 

177.  Loudon  has  been  called  the  great  clearing-house  of  the 
world.  Nearly  all  the  foreign  trade  of  the  United  States  is  settled 
through  England  and  France. 


LONDON   RECEIVES   FROM,  OR   GIVES   TO, 


Variable,  according  to  the  exchanges, 

Amsterdam  12  florins  and  3  stivers  for 

Bremen  609 J  rix-doUars  " 

Berlin  6  dollars,  25  silver  groschen    " 

Christiania  4  specie-daler,  30  skilling         " 

Constantinople  140  piastres  " 

Copenhagen  9  rigsbank  daler,  10  skilling    " 

Frankfort  121  Zollverein  florins  '* 

Genoa  25  lire,  35  centesimi  " 

Hamburg  13  marks,  12  schillings  " 

Milan  25  lire,  40  cents  '  " 

Leghorn  25    "     50     "  " 

Paris  25  francs,  21  centimes  " 

Rome  46  Paoli  " 

Stockholm  12  dalers  in  banco,  1  skilling  " 

Vienna  13  florins,  70  kreuzers  " 


£1  sterling. 
£100  sterling. 
£1 


£10 
£1 


Calcutta 
Gibraltar 

Lisbon 

Madrid 

Naples 

New  York 

Palermo 

Pekin 

Rio  Janeiro 

St.  Petersburg 

Venice 


23  pence  sterling        for     1  Comp.  rupee. 


53} 
50} 
39f 
49J 
119J 
78} 
30 
38} 
47 


1  duro,  or  hard  dollar, 

or  Spanish  dollar. 
1  milreis. 
1  hard  dollar. 
1  ducat. 
1  U.  S.  dollar. 
1  onza. 

a  thousand  cash. 
1  milreis. 
1  silver  rouble. 
6  lire  Austriache. 


(See,  also,  Syxopsis  of  Moseys  of  Account.) 


SHIPMENT    OF   SPECIE   TO    PARIS.  97 

£xc]iange  on  France. 

100  Centimes  make  1  Franc. 

1.  What  is  the  cost  of  a  bill  of  exchange  on  Paris  for 
fr.10277.76— exchange  at  fr.4.89  per  dollar  ? 

Ans.  $2101.76. 

2.  What  must  be  paid  for  a  bill  on  Paris  for  fr. 3875. 50, 
at  fr.5.19  per  dollar? 

3.  What  is  the  difference  between  the  Custom-House  value 
of  18.6  cts.  per  franc,  and  exchange  at  fr.5.19  per  dollar,  on 
a  bill  for  58000  francs  ? 

4.  Estimating  fr.5.21  to  be  the  par  value  of  81,  what  is 
the  premium  on  gold  when  exchange  for  currency  is  quoted 
at  fr.345  p6r  dollar  ? 

PRO    FORMA   ACCOUNT   OF   A    SHIPMENT    OF    MEXICAN 

DOLLARS    FROM    NEW    YORK   TO    PARIS. 

10000  dollars  purchased  at  IJ  premium,  10175.00 

Packing  Charges,  Ship'ping,  &c.,  7.50 

Marine  Insurance,  at  J%  on  $10175.00,  50.87 

Policy,  L 51.87 

Total  cost  in  New  York,  $102.34.37 

Value  in  Paris  10000  dollars  sold  at  fr.5.34  fr.53400.00 

Charges  in  Havre:  — 
Import  Duty  and  Permits,  fr.6.40 

Cartage,  Cooperage,  &c.,  10.10 

Freight,  i%  on  $10000,        25.00 
Primage,  10%,  2.50 

Atfr.5.25,  $27.50  =  144.37         160.87 

Charges  in  Paris  : — 
Freight,  fr.72.25 

Viewing  and  Delivering,         3.25 
Brokerage  ^%,  Com.  ifo  = 

^%,  333.75  409.25  570.12 

Net  proceeds,  cash,  in  Paris,  fr.5282!).88 

Add  Interest  for  63  days,  at  4%,  369.80 

Total,  fr.53199.68 

This  amount  drawn  at  60  days'  sight,  to  realize  the  above 
$10234.37,  will  require  the  rate  of  exchange  to  be  fr.5.20  per  dol- 
lar. Without  commission  in  Paris,  the  rate  would  be  fr.5.22^,  or 
J^  lower. 

G  9 


98  PROFIT  AND  LOSS, 


PROFIT  AND  LOSS. 

178.  The  differeDce  between  the  cost  of  an  article  ancl 
the  amouut  received  for  it  is  the  gain  or  loss. 

179.  The  cost  of  goods  consists  of  the  price  paid  to  the 
person  ij-oni  whom  they  were  purchased,  or  the  expense  of 
producing  them,  and  all  charges,  such  as  commissions,  freight, 
packing,  duties,  exchange,  insurance,  drayage,  &c.,  necessary 
to  place  the  goods  in  a  condition  ready  for  use  or  sale. 

TOTAL  GAINS  AND  LOSSES. 

180.  The  total  gains  or  losses  on  goods  may  be  easily  ascer- 
tained, when  all  are  sold,  by  taking  the  difference  between 
the  cost  and  selling  price ;  but  when  part  remains  unsold — 

llULE  I. — Add  the  vahw  of  (he  merchandise  unsold  to  the 
aviount  received  for  sales,  and  take  the  difference  between  the 
sum  thus  obtained  and  the  cost  of  the  merchandise  ;  the  differ- 
ence will  be  the  gain  or  loss.     Or, 

Rule  II. — I^ind  the  difference  between  the  amount  of  sales 

and  (he  cost  of  the  merchandise  ;    then — 

When  there  is  an  excess  of  COST  over  SALES — 

If  the  value  of  the  goods  remaining  unsold  is  more  than 

this  excels  J  the  difference  is  a  gain. 

If  the  value  of  the  goods  is  less,  the  difference  is  a  loss. 

When  the  sales  exceed  the  cost — 

Add  the  value  of  the  goods  unsold  to  the  difference  between 

the  SALES  and  the  COST ;   the  result  will  be  the  gain. 

181.  In  estimating  the  value  of  goods  remaining  unsold,  -when 
an  "account  of  stock"  is  taken,  it  is  customary  to  use  the  invoice 
or  purchase  price ;  but  if  the  market  value  of  the  goods  has  depre- 
ciated, either  from  the  nature  of  the  goods  or  the  state  of  the  mar- 
ket, or  if  there  has  been  a  decided  advance  in  prices,  an  allowance 
must  be  made  accordingly.  A  safe  rule  is,  if  they  are  salable 
goods,  to  estimate  them  at  what  it  would  cost  to  replace  them. 


PROFIT   AND   LOSS.  99 

GAINS  AND  LOSSES  ON  PARTICULAR   GOODS. 

182»  Case  I. — To  find  the  gain  or  loss,  when  the  cost  and 
rate  per  cent,  are  given. 

KuLE. — Multiply  the  cost  by  the  rate  per  cent.,  and  divide 
by  100. 

Note. — The  selling  price  is  found  by  adding  the  gain  to  the  cost,  or 
deducting  the  loss. 

EXAMPLES. 

1.  Bought  broadcloth  for  $250,  and  sold  it  at  15%  ad- 
vance.    How  much  did  I  gain  ? 

250  X  15  =  3750  837.50,  Ans. 

2.  How  much  do  I  gain  per  barrel,  if  I  sell  flour  which 
cost  $11  per  bbl.  at  a  profit  of  25%  ?  Ans.  82.75. 

3.  Bought  a  cargo  of  wheat  for  $11500,  and  sold  it  at  a 
profit  of  16^%.      How  much  did  I  gain  ? 

4.  A  merchant  purchased  a  quantity  of  lumber  for  $2200. 
He  paid  for  freight  and  drayage  $75  ;  commission  for  selling, 
$125.  He  gained  27%  on  the  entire  cost.  How  much  was 
it  sold  for,  and  how  much  did  he  make  ? 

5.  Bought  100  barrels  of  sugar  for  $1500.75,  which  Isold 
at  an  advance  of  12i%.  How  much  did  I  gain,  and  how 
much  did  I  receive  ? 

6.  What  difference  will  it  make  in  the  cost  per  yard  to  the 
American  merchant  who  buys  his  goods  in  England  for  $4 
per  yard,  and  pays  a  duty  of  30  %  on  them,  if  the  price  in 
England  is  reduced  to  $3  per  yard  ? 

EXAMPLES. 

1.  What  is  the  selling  price  of  the  following  goods  at  25% 
above  the  given  price  ? 

5  gross  steel  pens,  ^'  i,  |^,  ^.   (See  Abbeeviations.') 
20  diamond  satin  bonnets,  @  30c. 
50  doz.  tassels,  @  $1.50  per  doz. 

1  case,  12  pairs  men's  calf  sewed  boots,  @  $4. 

3     "     60     "      misses'  lasting  gaiter  boots,  @  $1.40. 

8  pa.  mousseline  de  laine,  240  yds.,  @  60c. 

12  doz.  bl'k  Italian  cravats,  @   °^  ii2'  $15'  iie" 


100  PROFIT   AND    LOSS. 

183.  Case  II. — To  find  the  rate  per  cent.,  when  the  gain 
or  loss,  or  cost  and  selling  price,  are  given. 

Rule. — Multiply  the  gain  or  loss  hy  100,  and  divide  the 
product  hy  the  cost. 

EXAMPLES. 

1.  Sold  a  house  for  $7995,  which  cost  me  66500.  What 
per  cent,  did  I  gain  ? 

7995  —  6500  =  1495        1495  X  100  =  149500 
149500  -^  6500  =  23.  Ans.  23%. 

2.  Bought  a  cargo  of  flour  for  $18000,  and  sold  it  for 
$20000.     What  per  cent,  did  I  gain  ? 

3.  If  by  a  decline  of  prices  I  was  obliged  to  sell  a  lot  of 
coffee  for  $2200  which  cost  me  $2500,  what  per  cent,  did  I 
lose? 

4.  A  merchant  bought  a  quantity  of  silks  at  $2.50  per 
yard,  and  sold  them  at  $2.87 J.    What  per  cent,  did  he  make? 

184.  Case  III. — To  ascertain  the  cost,  when  the  selling 
price  and  rate  per  cent,  gained  or  lost  are  given. 

Rule. — Multiply  the  selling  price  hy  100,  and  divide  the 
product  hy  100  increased  hy  the  gain  per  cent,  or  diminished 
hy  the  loss  per  cent. 

EXAMPLES. 

1.  An  invoice  of  goods  purchased  in  England  was  sold  for 
$3600,  realizing  a  gain  of  20%.     What  was  the  cost  ? 

100  +  20  =  120  360000  ---  120  =  3000. 

Ans.  $3000. 

2.  A  merchant  sold  sugar  for  $1260,  by  which  he  lost 
10%.     What  was  the  cost  ? 

100  —  10  =  90  126000  -f-  90  =  1400. 

Ans.  $1400. 

185.  Case  IV. — To  find  the  cost,  when  the  gain  or  loss 
and  the  rate  per  cent,  are  given. 

Rule. — 3fidtiply  the  gain  or  loss  hy  100,  and  divide  the 
product  hy  the  rate  per  cent. 


PROFIT   AND    LOSS.  101 

EXAMPLES. 

1.  I  gained  $2250  by  selling  goods  at  a  profit  of  15^. 
What  did  they  cost  ? 

225000  -T-  15  =  15000.  Ans.  $15000. 

2.  How  large  sales  must  I  make,  at  a  profit  of  12?  per 
cent.,  to  clear  $3000  ?  Ans.  $27000. 

3.  Sold  flour  at  an  advance  of  20  ^ ,  and  gained  $136. 
What  did  it  cost  ? 

186.  Case  V. — To  find  the  rate,  when  the  cost  and  gain 
or  loss  are  given. 

Rule. — Multipli/  the  gain  or  loss  hy  100,  and  divide  hy 
the  cost. 

EXAMPLES. 

1.  Bought  goods  for  $1875,  and  sold  them  so  as  to  gain 
$468.75.     What  was  the  rate  per  cent.  ? 

46875 -- 1875  =  25.  Ans.  25%. 

2.  Sold  teas  which  cost  me  45  cts.  per  pound,  and  gained 
9  cts.  per  pound.     What  was  the  rate  of  gain  ? 

3.  A  merchant  sold  corn  which  cost  him  $325,  and  gained 
$48.75.     What  was  the  gain  per  cent.  ? 

4.  If  the  United  States  wine  gallon  contains  231  cubic 
inches,  and  the  beer  gallon  282  cubic  inches,  what  per  cent, 
is  the  latter  larger  than  the  former  ? 

5.  What  per  cent,  do  I  gain  if  I  sell  cloth  which  cost 
$2.50  for  $3.75  per  yard  ? 

187.  To  find  what  the  gain  or  loss  per  cent,  would  be  if 
sold  at  another  price,  the  selling  price  and  rate  per  cent,  of 
gain  or  loss  being  given. 

Rule. — Multiply  the  proposed  selling  price  hy  100,  in- 
creased hy  the  given  rate  per  cent,  gained,  or  diminished  hy 
the  given  per  cent,  of  loss,  and  divide  the  product  hy  the 
actual  selling  price,  and  take  the  difference  hetween  the  quo" 
tient  and  100. 

9* 


102  PREMIUM    AND    DISCOUNT. 

EXAMPLES. 

1.  If  by  selling  cloth  at  §5  per  yard  I  gain  25%,  what  per 
cent,  will  I  gain  if  1  sell  it  at  §6  per  yard  ? 

100  +  25  =  125     125X6  =  750 

750  H-  5  =  150    150  —  100  =  50.  Ans.  50%. 

2.  Sold  flour  for  $10,  and   lost  20%.      What  per  cent, 
would  I  have  lost  if  I  had  sold  it  for  §o  ?  Ans.  36%. 


PREMIUM  AND  DISCOUNT. 

188.  Premium  is  the  percentage  by  which  an  amount  is 
increased.  Discount,  the  percentage  by  which  an  amount 
is  diminished. 

189.  In  purchasing  one  currency  with  another  of  different 
value,  the  discount  on  that  of  the  highest  value  is  not  the 
same  as  the  premium  on  that  of  the  lowest  at  the  same  rate. 

SlOO  in  currency,  at  a  discount  of  5%,  is  worth  895  in  gold. 
895  in  gold,  at  a  premium  of  5%,  is  worth  95  -f- 4.75  =:  99.75. 

190.  Merchants  are  usually  allowed  a  discount  of  5%  on 
invoices  and  bills  purchased  at  6  months'  credit,  for  cash  pay- 
ment within  30  days.  The  5%  is  allowed  on  the  amount  of 
the  bill  or  invoice ;  but  often,  when  part  is  paid,  the  discount 
is  calculated  on  the  cash  payment,  instead  of  on  the  propor- 
tion of  the  bill  settled,  which  causes  a  loss  to  the  purchaser. 
If  an  invoice  costs  $2500,  and  $1900  is  paid,  it  will  cancel 
$2000,  thus  saving  to  the  purchaser  $100;  but  if  the  5  ^  is 
calculated  on  $1900,  the  amount  paid,  the  payment  will 
cancel  only  $1995,  making  a  difi'erence  of  $5  between  the 
two  methods. 

191.  To  find  what  amount  is  settled  when  part  only  is 
paid,  a  discount  on  sales  being  allowed  for  prompt  payment. 

Rule. — Annex  two  ciphers  to  the  cash  payment,  and  divide 
hy  100  less  the  rate  per  cent,  of  discount. 
.    100  —  5  =  95     190000^-95  =  2000.  Ans.  $2000. 


GOLD   AND    CURRENCY. 


103 


By  Analysis. — If  5fo  discount  is  allowed,  $95  will  pay  a  bill  of 
$100,  and  $1900  will  pay  as  many  hundreds  as  95  is  contained  times 
in  it,  =  2000,  the  answer. 

By  Peopoktion.— 95  :  100  : :  1900  :  2000. 

The  difference  between  5%  on  the  amount  of  invoice  and  5^  on 
the  amount  of  cash  paid  equals  25  cents  for  every  $100  of  the  in- 
voice; at  6^,  the  difference  equals  36  cts. ;  aXZfo,  9  cts. 


TABLE 

Showing  the  Comparative  Value  of  Gold  and  Currency, 


When  $1  in  Gold  is  sold  for 

The  Discount 

The  Amount  in  Gold  -which  can 

Currency  at 

on  Currency  is 

be  bought  for  $100 

in  Currency. 

1.05  or       5  per  cent. 

Prem. 

4.77  per  cent. 

$95.23  or 

%9h^^ 

accurately. 

1.10   ' 

'      10 

" 

9.10       " 

90.90   " 

mr 

" 

1.15   ' 

'      15 

« 

13.04      « 

86.96   « 

ml 

« 

1.20   ' 

'      20        « 

" 

16.67       " 

83.33   " 

831 

" 

1.25   ' 

'      25 

" 

20.00      " 

80.00   " 

80 

« 

1.30   ' 

'      30        " 

« 

23.08       " 

76.92   " 

76}i 

« 

1.40   ' 

'      40 

« 

28.58       " 

71.42    " 

713 

" 

1.50   ' 

'      50        « 

" 

33.33       " 

66.66   " 

66 

« 

1.60 

'      60        " 

" 

37.50       " 

62.50   « 

62 

« 

1.70 

<      70        " 

" 

41.18      " 

58.82   " 

5814 

" 

l.SO   ' 

'      80        " 

" 

44.45      « 

55.55   " 

55| 

'« 

1.90   ' 

'      90        « 

" 

47.37       " 

52.63   " 

52  a 

•« 

2.00 

'    100        " 

" 

50.00      " 

60.00   " 

50 

" 

2.50   ■ 

'    150 

"• 

60.00      « 

40.00   " 

40 

« 

5.00   ' 

'    400        « 

« 

80.00      " 

20.00   " 

20 

« 

7.50 

'    650        « 

" 

86.67       " 

13.33   » 

\^ 

«« 

10.00 

'    900        " 

" 

90.00       " 

10.00   " 

10 

<( 

50.00 

'  4900        « 

" 

98.00       " 

2.00   " 

2 

" 

100.00   ' 

'  9900        « 

99.00       " 

1.00   « 

1 

The  accuracy  of  the  above  figures  can  be  tested  by  simply  adding 
to  those  in  the  last  column  that  per  cent,  of  each  which  is  desig- 
nated in  the  column  containing  the  rate  of  premium. 

The  above  Table  may  also  be  used  for  finding  what  rate  taken  o<f 
the  selling  price  is  equivalent  to  a  certain  rate  added  to  the  cost  or 
purchase  price.  For  instance,  20%,  as  shown  in  the  discount 
column,  deducted,  is  e'quivalent  to  25%  added  to  the  remainder,  t  '^ 
shown  in  the  premium  column. 

To  find  how  much  gold  can  be  bought  for  a  given  amount  of  cur- 
rency. Multiply  the  amount  of  currency  by  100,  and  divyfe  the  product 
by  100  increased  by  the  rate  of  premium  on  gold. 


104 


DISCOUNTING   BILLS   AND   INVOICES. 


DISCOUNTING  BILLS  AND  INVOICES. 

192.  lu  discounting  Bills  and  Invoices,  losses  sometinieg 
occur  when  they  are  not  suspected.  If  an  article  is  sold  at 
a  profit  of  40%,  and  10  ^  be  deducted  from  the  selling  price, 
the  gain  is  not  30%,  but  26%,  because  the  discount  is  calcu- 
lated on  the  first  cost  and  also  on  the  profit,  whereas  the  profit 
is  calculated  on  the  first  cost  only.  So,  also,  if  40  %  be  added, 
and  then  30%  deducted,  the  apparent  profit  is  10%,  but  the 
real  loss  is  "2  ^ . 


Cost,  $200 

40  per  cent.,  80 

Advanced  price,  280 

Less  10  per  cent,  28 

Cash  price,  252 

26  per  cent,  profit. 

10  per  cent,  of  $200 

(cost)  =  $20 

10  per  cent,  of  $80 

(profit)  =      8 

$28 
=  14  per  ct.  of  cost. 


Cost, 

40  per  cent.. 

Advanced  price. 
Less  30  per  cent., 

Cash  price, 

2  per  cent.  loss. 

30  per  cent,  of  $1.00 

(cost) 
30  per  cent  of  .40 

(profit) 


$1.00 
.40 

Tio 

.42 

~98 


=  .30 

=  .12 
lt2 


or  42  per  ct.  of  cost. 


Ex.  10. — What  is  the  difierence  between  discounting  a 
bill  of  $1200  at  40%,  and  then  taking  a  discount  oiF  the  re- 
mainder of  5%  for  cash  payment,  and  discounting  the  whole 
bill  at  45%? 

Ex.  11. — If  a  merchant  buys  a  book  at  a  discount  of  20% 
on  the  retail  price,  and  sells  it  at  the  retail  price,  what  per 
cent,  on  the  purchase-price  does  he  gain  ?  What  per  cent, 
does  he  gain  if  he  buys  at  33  J  %  discount  and  sells  it  at  the 
retail  price  ? 

193.  To  find  the  selling  price  from  which  a  certain  per 
cent,  may  Ue  deducted  and  the  goods  sold  at  cost,  or  a  given 
per  cent,  above  or  below  cost. 


DISCOUNTING    BILLS   AND    INVOICES.  105 

Rule. — To  sell  at  cost. 

Multiply  the  cost  hy  100,  and  divide  the  product  hy  100 
diminished  hy  the  rate  per  cent,  to  he  deducted. 

To  sell  at  a  given  rate  per  cent,  above  or  below  cost. 

Multiply  100  increased  hy  the  per  cent,  to  he  gained  or 
diminished  hy  the  per  cent,  to  he  lost,  hy  the  cost,  and  divide 
the  product  hy  100  diminished  hy  the  rate  to  he  deducted  from 
the  selling  price. 

EXAMPLES. 

1.  Bought  goods  for  $100  :  for  how  much  shall  I  sell  them 
that  I  may  deduct  20%  and  yet  obtain  what  they  cost? 

100  X  100  =  10000 

10000  H-  80  =  125.  Ans.  $1 25. 

2.  For  what  must  I  sell  goods  worth  $100,  so  that  I  may 
deduct  45  %  and  yet  gain  30%  ? 

100  +  30  =  130  100  X  130  =  13000 

13000^55  =  236.31.  Ans.  $236.31. 

Note.— 236.31  =  136.31^  advance  on  100.  When  a  long  list  is 
to  be  made  out  at  a  uniform  rate  of  profit,  labor  may  be  saved  by 
adding  the  total  advance  at  once. 

3.  If  I  buy  cloth  for  $1.90  per  yard,  at  what  price  must 
I  mark  it,  that  I  may  deduct  5%  for  my  cash  customers  from 
the  marked  price,  and  yet  gain  20%  ?  Ans.  $2.40. 

4.  A  bookseller  wishes  to  increase  the  price  of  a  book 
which  he  now  sells  for  $2,  so  that  he  can  deduct  20  ^  and 
yet  receive  the  present  price.  What  must  be  the  advanced 
price  ? 

5.  A  dry-goods  merchant  sells  cloths  for  $1 68,  by  which 
he  gains  20%.  What  must  be  the  advanced  price  so  that 
he  can  deduct  5  %  and  still  make  the  same  profit  ? 

6.  What  must  be  the  price  from  which  20  %  may  be  de- 
ducted and  leave  40  cts.  ? 

7.  Bought  cassimeres  for  $1.20  per  yard :  at  what  price 
must  they  be  sold  that  5%  may  be  deducted  for  cash  pay- 
ment and  leave  a  profit  of  25%  ? 

8.  Find  the  selling  price  of  French  plate  glass  that  cost 
$60  per  light,  from  which  45  ^  may  be  deducted  and  30  % 
gained  on  cost. 


lOfi 


DISCOUNTING   BILLS  AND   INVOICES. 


What  is  the  selling  price  of  the  goods  in  the  following  in- 
voice, so  that  25%  may  be  gained  on  the  prices  given,  and 
yet  allow  a  discount  of  5%  for  cash  payment? 


Mr.  Chas.  p.  Gkegoby 


Philadelphia,  April  20,  18G7. 
BoH  of  J.  J.  Bailey  &  C!o. 


1  doz.  long  shawls,  @  $6  75 

2  pieces  sheeting,  30.35  yds.,  "       .15 
6  doz.  linen  hdkfs.,                              «        .30 

3  pieces  twilled  muslin,  84  yds.,        *'        .20 
1  piece  mousseline  de  laine,  32  yds.,  *'        .24 


81 


00 


J.  Harris  Brown 


Philadelphia,  March  12,  1867. 
BoH  of  Myers  «&  Claghorn. 


240  yds.  ingrain  carpet,  @  $1.20, 
Less  5%, 

Rec'd  payment, 

Myers  &  Claghorn, 

per  J.  B.  Jones. 

Freight  and  other  expenses  to  Madison, 


288 
14 


$273 


21 


§295 


!«' 


00 
40 
60 


89 


49 

At  what  must  I  sell  the  carpeting  per  yard,  to  gain  20  % 
and  allow  a  discount  of  10%  from  selling  price  ? 

Solution.— 5%  of  81.20  =  6>^.  1.20  —  6  =  1.14,  net 
cash  price  per  yard  in  Philadelphia.  Charges,  21.89  =  8% 
of  total  cost  in  Philadelphia.  8  %  of  1.14  =  9+.  1.14  -}- 
9  =  $1.23,  advanced  cost  per  yard. 

Proof.— 2iO  yds.  @  $1.23  =  $295.20,  which,  allowing  for  frac- 
tions, is  the  cost  of  the  invoice. 

20^  of  $1.23  =  25/,  nearly;  adding  this  to  the  cost,  we  have  $1.48 
as  the  amount  to  be  received.  Then,  to  obtain  the  selling  price, 
100  —  10  =  90        148  --  90  =  1.64+.  Ans.  $1.64  per  yd, 

Froof.—lOfo  of  1.64  =  16+         1.64  —  16  =  1.48. 


ADVANCED    COST    OF    INVOICES* 


107 


Tnvoice  of  Merchandise,  marked  as  in  the  margin,  and  forwarded 
by  J.  Powers  &  Co.,  Philadelphia,  per  Penna.  R.R.,  to  Messrs. 
Brown  &  Gregg,  Chicago,  as  per  their  order  and  at  their  risk. 


B.&Q,. 

25  Boxes  Valencia  Raisins, 

Grusa  weight,                           710  lbs. 
Tare,  4^  lbs.  per  box,             112i  " 

o97i  @  15  cts. 

89 

621 

B.  £». 

6  Bags  Canary  Seed, 

1184  lbs.  — 15  lbs.  tare=1169  net, 
19^3  bushels  @  4.85, 

94 

49 

h.&G. 

10  Bbls.  Currants,  266,  254,  236,  264,  244,  243, 
260,  260,  200,  243, 
Total,                                                   2530 
Tare,  26  lbs.  per  bbl.                            260 

2270  @  18c. 

408 

60 

B.  4Q. 

10  Boxes  Castile  Soap,  406  lbs. 
Tare,  8  lbs.  per  box,      80 

326  lbs.  @  14c. 

45 

64 

B.  4G. 

5  Cases  \  Sardines, 

500  boxes  @  35c. 

Cartage,                                                           3.00 
Ins.  on  $900  @  i  per  cent.                             4.50 

175 

00 

813 
7 

35 
50 

820 

85 

Bec'd  Payment, 

J.  Powers  &  Co. 

Charges  in  Chicago  : — 
Freight  on  4050  lbs. 
Cartage, 


$1.10  per  h'd. 


44.55 
3.00 

47.55 


Total  charges  equal  1%,  nearly,  of  first  cost  of  goods. 

What  must  be  the  selling  prices  in  the  above  invoice,  that  I  may 
gain  30%?  ^ 

SOLUTION. 
Total  invoice  price,  $813.35 

Charges  in  Philada.  $7.50 

Chicago,  47.55        55.05 

Total  cost,  $868.40 

55.05  =  7%,  nearly,  of  $813.35. 
.   .  Invoice  Price.  Selling  Price. 

R.aisins,  15c.  +  7%  =     16(      * 

Canary  Seed,        4.85     -f-  "     ^  5-19 
Currants,  .18     +  "     =    .19 

Castile  Soap,  .14     -f-  '<     =    .15 

Sardines,  .35     -)-  "     =    .37  

The  above  is  given  simply  as  an  exercise  in  calculation.     Goods 
are  not  generally  sold  at  a  uniform  rate  of  profit. 


15c.  4-  7%  =     16c.,  increased  30%  .=    .21 
""      ■     ■  '"  =6.75 

=    .25 

=    .20 

.48 


108 


ADVANCED   COST   OF   INVOICES. 


IMPORTERS'  ADVANCE  TABLE, 

Showing  the  value  of  Sterling  Money  from  1  penny  to  £5,  at  par, 
and  at  an  advance  from  7  J  to  50  per  cent. 


—  ? 

ADVANCE  PER  CENT. 

Par. 

7* 

10 

12i 

15 

20 

25 

30 

33* 

40 

50 

».  d. 

$Ct8. 

$cts. 

$cts. 

$cte. 

$Ct8. 

$Ct8. 

lets. 

$Ct8. 

lets. 

Sets. 

$ctg. 

Id. 

.0185 

•o«99 

.0204 

.0208 

.021 

.0222 

.0231 

.0241 

.0261 

.0259 

joi-fi 

6 

.11 

.12 

.13 

.13 

.13 

.13 

.14 

.14 

.15 

.16i 

.161 

7 

IJ 

.14 

.14 

.15 

.15 

.16 

.16 

.17 

.17 

.18i 

.19* 

8 

14* 

.16 

.16 

.17 

.17 

.18 

.19 

.19 

.20 

.20J 

•22* 

9 

16} 

.18 

.18 

.19 

.19 

.20 

.21 

.22 

.22 

.23A 

.26 

10 

i8t 

.20 

.20 

.21 

.21 

.22 

.23 

.24 

.25 

.26 

.271 

11 

ioi 

.22 

.22 

.23 

.23 

.24 

.25 

.27 

.27 

.28i 

.30* 

U.O 

22i 

.24 

.24 

.26 

.26 

.27 

.28 

.29 

.30 

.31 

.33} 

1   1 

24 

.26 

.26 

.27 

.28 

.29 

.30 

.31 

.32 

.331 

■SS 

1  S 

26 

.28 

.29 

.29 

.30 

.31 

.32 

.34 

.35 

.36i 

.39 

1  s 

i7f 

.30 

.31 

.31 

.32 

.33 

.35 

.36 

.37 

.39 

.«f 

1  u 

a9i 

.32 

.33 

.33 

.34 

UJ6 

.37 

.39 

40 

.4U 

.44* 

1  5 

31I 

.34 

.35 

.36 

.36 

.38 

.39 

.41 

.42 

.44 

•47} 

1   6 

JJy 

.36 

.37 

.38 

.38 

.40 

.42 

.43 

.44 

.46* 

.60 

1   7 

3SJ 

.38 

.39 

.40 

.40 

.42 

.44 

.46 

.47 

.49^ 

.62* 

1  8 

37 

.40 

.41 

.42 

.43 

.44 

.46 

.4« 

.49 

.61* 

.65* 

1   0 

?9 

.42 

.43 

.44 

.46 

.47 

.49 

.61 

.52 

.64* 

.68} 

110 

4^ 

.44 

.45 

.46 

.47 

.49 

.61 

.63 

.54 

.57 

.61 

111 

4^ 

.46 

.47 

.48 

.49 

.51 

.53 

.65 

.57 

.69i 

.64 

t  0 

•44i 

.48 

.49 

.50 

.51 

.53 

.56 

.68 

.69 

.e2J 

.66* 

s 

.661 

.72 

.73 

.75 

.77 

.80 

.83 

.87 

.89 

.931 

1.00 

u 

.89 

.96 

.98 

1.00 

1.02 

1.07 

1.11 

1.16 

1.19 

1.24i 

1.33} 

5 

l.il 

1.19 

1.22 

1.25 

1.28 

1.33 

I..39 

1.44 

1.48 

1.50 

1.66* 

6 

l.Jji 

1.43 

1.47 

1.50 

1.53 

1.60 

1.66 

1.73 

1.78 

1.86f 

2.00 

7 

i.55i 

1.67 

1.71 

1.76 

1.79 

1.87 

1.94 

2.02 

2.07 

2.171 

2.3.^ 

8 

i-77f 

1.91 

1.96 

2.00 

2.04 

2.13 

2.22 

2.31 

2.37 

2.49 

2.66* 

9 

a.oo 

2.15 

2.20 

2.25 

2.30 

2.40 

2.50 

2.60 

2.67 

2.80 

3.00 

10 

i.22r 

2.39 

2.44 

2.50 

2.56 

2.67 

2.78 

2.89 

2.96 

3.11 

ZAof 

£1 

4-44i 

4.78 

4.89 

5.00 

5.11 

5.33 

6.66 

5.78 

5.93 

6.22} 

6.6f* 

S 

8.89 

9.56 

9.78 

10.00 

10.22 

ia67 

11.11 

11.56 

11.85 

12.44i 

13.3:5* 

3 

ijjjI 

14..33 

14.67 

15.00 

15.33 

16.00 

16.66 

17.33 

17.78 

18.66 

20.00 

u 

i7-77f 

19.11 

19.56 

20.00 

20.44 

21.33 

22.22 

23.11 

23.70 

24.89 

26.66* 

5 

M.Mi 

23.89 

24.44 

25.00 

25.56 

26.67 

27.78 

28.89 

28.63 

31.11 

33.3S} 

ExPLAN.\Tiox. — Find  the  value  of  an  article  invoiced  at  2  shillings, 
when  the  charges  on  the  invoice  are  ZZ\  per  cent,  on  the  cost  of  the 
goods : — Look  under  33^,  and  opposite  2  shillings,  and  we  have  59, 
— the  advance  cost  of  the  article.  "When  the  invoice  price  is  not  in 
the  table,  take  the  sura  of  such  numbers  as  will  equal  the  required 
cost.  When  the  rate  of  advance  is  not  given,  add  the  required  rate 
to  the  value  in  the  par  column. 


INVOICE    FROM   LIVERPOOL. 


109 


Invoice  of  Qv^ensware  shipped  by  George  Hammersly,  Liver- 
pool, Eng.,  per  "Emily  Augusta,"  and  consigned  to  Messrs. 
Field  &  Cogley,  Philadelphia,  for  their  account  and  at  their 
risk. 


O 


\  F.  AC. 
15 


36  Teapots,  ft   h\,  "Niagara"  F.  Gold 
Band 

ISSagars,    24  "  Niagara"  F.  Gold  Band  . 

18  Creams,  24        "  " 

20  Bowls,     30         "  " 

14doz.Teaaunhd.  «  " 

27    «    Plates,  \  @  2/-,  V  @  3/-,  f  @ 
3/6,  "  Niagara"  F.  Gold  Band 

5    «    Dishes,  fV  @  9/-    A  @  15/-,  tV 
@  21/-,  "Niagara"  F.  G'd  Band 

2\  2* 

5  "   Bakers',  7  @  6/-,  8  @  9/-,  "Niet- 

gara"  F.  Gold  Band    . 

6  Cover  dishes,  92,  "  Niagara"  F.  Qd.  Bd. 
4  Sauce  Tureens  Comp.,  "  " 

10  Pickles,  "  « 

25  per  cent,  discount,       ... 

Crato  and  Straw        .... 
Shipping  Charges      .... 


27/- 

£. 

2 

1 

7 

d. 
3 

3 

£. 

». 

d. 

6 

9 

8^ 

5 

4 

6/- 

3 
3 
3 

1 

10 
18 
9 

17 

6 
6 

2/3 

13 

6 

2/6 

10 

6 



5 

- 

18 
4 
13 

14 

5 

11 

14 
13 

9 
17 

4 

4 

6 
10 
4 

Ft.  In. 

65  11     Freight  13/- 

£14. 17s.  M.  at  par  = 

Exchange,  lOJ  per  cent.  . 

Insurance,  \\  per  cent  on  $5 

Duties  and  Entry 

Interest  from  Shipment,  . 


$96 


What  is  the  value  of  a  shilling  in  the  above  invoice  at  the 
advanced  cost  price  ? 


10 


110 


INVOICE   FROM   BIRMINGHA.vx. 


Find  the  percentage  of  the  particular  charges  and  of  the 
general  charges  of  the  following  invoice;  and,  also,  find  the 
percentage  to  be  added  to  allow  a  discount  of  5  ^  from  the 
selling  price  and  retain  a  profit  of  25%. 

BiEMiiirGHAM,  Ekg.,  April  30, 1867. 
Invoice  of  Hardware  purchased  by  order  and  for  account  and  risk 
of  H.  L.  Harrisok  &  Bro,,  Philadelphia,  and  forwarded  to 
Messrs.  Alfred  Field  &  Co.,  Liverpool,  for  shipment. 


H.  L.H. 
170 
F. 

13/6 
i  doz.  Jap'd  Oval  Trays,  10883,  21  in.     . 

11/-          8/- 
i    "        "        "         "       ea.lOS:82,       10778,    20  in. 

£. 

t. 

6 

9 

d. 
9 

6 

7/3     8/6    10/-    11/6 
2    "    Oval  Trays,  7128,  ea.  18,     20,     22,     24, 

iu  i  dozs 

14 

e 

4 

10 

9 

Extra  pap'g  2  parcels  id.,  and  1  @  8d.    . 
Case,  4c,  6/6;  Freiglit  to  Liverpool,  4^  . 

9 

9 
6 

171 

17 
16 

1 

6 
2 

1 
0 

0 

12  doz.  Painted  Scale  Beams,  No.  B,  12  in.    . 
65  per  cent,  discount     . 

5 
3 

11 

8/-    9/-    10/6  14/- 
10  gro.  Tin'd  Kettle-Ears,  ea.  A,      B,      0,      1, 

16/-   20/-    23/6 

2,       3,        4, 

77i  ppr  cent,  discount    . 

50 
39 

10 
2 

9 

11 

7 

3 

Cash,  &c.,  7/6;  Freight  to  Liverpool,  12/3 

19 

9 

169 

14 

7 

11 

4/-  2/-    1  cwt.  qr.  lb. 
4  doz.  Brt.  Ov.  Bake  Pans.  ea.         1.3  V    5      1    5 
3    "          "                "            "           4.5J  @7d.iilb. 
40  per  cent,  discount 

17 
6 

5 
18 

11 
4 

10 

7 

7 

Cash,  &c.,  6/-;  Freight  to  Liverpool,  6/6  . 

12 

6 

8 
15 

9 

8 

11 

6 
14 
11 

31 
1 

2 

T 

7 
0 

"9 
5 

4 

1 

Amount  of  Case,  170 

"   Cask,  171 

"      "      169       

Commission,  4  per  cent. . 
Dock  and  Town  Dues,  13;  Cartage,  Porterage, 

ic.  4/6;  Shipping,  3/- 

Bills  of  Lading,  1/6;  Canal  Ins.  i  per  cent.,  3/2; 

Consul's  fee,  11/- 

10 

11 

1 

0 
2 

5 

£  E. 

pro  ALFRED   FIELD  4  CO. 

35 

8 

7 

W.    MiXCHER. 

CHARGES   ON   FOREIGN   INVOICES.  Ill 


Charges  on  arrival  in  Philadelphia: — 

Duties  on  case  170,  $29,  (n)  40  fc. 

11.60 

"       "  eases  171,  169,  $123,  @  35%, 

43.05 

54.65 

Brokerage, 

2.00 

Fees,  &c.,  2.76,  Triplicate  Invoice,  1.25, 

4.00 

Cartage, 

3.00 

Bonded  Warehouse  Fees, 

7.00 

Freight  from  Liverpool, 

18.35 

89.00 

In  reckoning  the  cost  of  goods,  the  amount  of  all  the 
charges  is  found,  and  then  the  invoice  price  of  each  article  is 
increased  in  the  proportion  that  the  charges  bear  to  the  pur- 
chase price  of  the  goods.  The  profits  are  to  be  added  after 
finding  the  total  cost. 

In  foreign  invoices,  when  the  prices  are  in  pounds,  shil- 
lings, or  francs,  it  is  frequently  found  convenient  to  increase 
the  true  value  of  the  pound  or  franc  in  the  proportion  that 
the  charges  bear  to  the  purchase  price,  and  then  obtain  the 
total  cost  of  each  article  by  taking  the  currency  at  this  in- 
creased valuation.  For  instance,  if  the  charges  were  equal  to 
20  <fo  of  the  first  cost  of  the  goods,  the  shilling  would  be 
estimated  at  an  advance  of  20%  on  22.2c., — the  par  value  of 
a  shilling, — or  at  the  valuation  of  26.6c.  Then,  300  yards 
extra  ticking,  @  2  shillings  per  yard,  would  be  marked  as 
costing  53ic.  per  yard. 

A  franc,  in  an  invoice  on  which  the  charges  are  equal  to 
6Q%  of  the  invoice,  would  be  reckoned  at  66%  advance  on 
the  exchange  value  of  a  franc.  Or,  the  total  cost  of  the  invoice 
in  United  States  currency  may  be  divided  by  the  number  of 
shillings  or  francs  in  the  total  purchase  price  of  the  goods. 

In  the  invoice  on  the  next  page,  the  cost  is  calculated  in 
this  manner,  no  account  being  taken  of  the  particular  dis- 
counts or  charges,  although  for  strict  accuracy  this  should  be 
done.  The  entire  cost  of  each  item  is  reckoned  at  41  |c.  per 
franc.  Thus,  4  gross  combs,  @  36  fr.  per  gross,  cost  36  X 
41 1  =  $15.06  per  gross. 


112 


INVOICE   FROM   PARIS. 


Pakis,  October  16, 1865. 
Invoice  of  One  Package  Merchandise  purchased  by  3.  Glaexzeb 
&  Vessepuy,  Jr.,  of  Paris,  for  account  and  risk  of  Messrs. 
E.  Clixton  &  Co.,  of  Philadelphia,  and  shipped  at  Havre  bij 
Sherbette,  ILajste  &  Co.  on  board  the  Steamer  Bospliorus^ 
bound  for  New  York^  and  consigned  to  themselves. 


E.C.&  Co. 

#134 

1  CASE. 
6.    13  kflo.  Bean  Blanc  BrisUes,  @  fr.ll.^ 

149  50 

7.    12    »       «         "           "           "      12.^       .       . 

3  per  cent,  discount    . 
3233.    4  gro.  Baflalo  Tnck  Combs,  @  fr.36  net     . 

150( 

299  S 
8  S 

144 

1 

lO' 

16     290 

55 

323*.    3    "           «          "          «           "    42   «     .        . 

12« 

3235.    2"           «          "          "           "48".. 

96 

3331.  36  doz.  Hair  Brnshes,                  "      6    "     . 

216 

682 

00 

2899.    5  gro.  Tooth  Brushes,  4  R,  @  fr.61     . 

25& 

2900.    5    "         "           "         6B,  @fir.63     . 

315 

„                                         4  per  cent,  discount    • 
2911.    4  gra  Tooth  Brushes,  @  &.  21   .... 

670 
228 

84 

0    647 

20 

2913.    3    «        «             «           "     33  .        .        .        . 

99 

"  bis  3   «        "             »           "     33  . 

99 

2919.    3    "        "             «           "     45  .        .        .        . 

135 

»  bis  1    »        «             "           "           .... 

45 

2  per  cent,  discount    . 

4«2 
92( 

n    452 
'  1872 

80 

55 

Commission  3  per  cent,  on  fr.    290.55  =    8.70 

5      "             "      1582.     =79.10 

«    ^      20.   „          15.   ^.     13.40  ^    ^        5.25 
Packing         Boxes         Tisa             Postage 

87 
63 

80 

65 

Freight  from  Paris  to  HaTre 

1» 

80 

15  days'  interest,  @  6  per  cent. 

6 
2029 

80 

05 

INVOICE    FROM    PARIS. 


113 


Charges  and  Duties  paid  in  New  York  for  account  of  invoice  con- 
signed to  E.  Clinton  &  Co.,  Nov.  15165. 


25  kilos.  =  lbs.  55,  @  fr.l5  per  lb., 
Francs,     290.65  =  $54.00 

366.     =    68.00  @  35%, 
1216.     =  226.00  "  40%, 

1872.55 

Entry  Bond,  @  $0.50 

Oath,  Transfer  Order,  &c.,  1.25 

Postage,  .15 

Cartage,  .75 

Bond  for  Triplicate  Invoice,  .65 

Premium  on  Gold,  @  47|%,  58.00 
Contingent  Exp.  50/,  Com.  3.50,       4.00 


Insurance,  fr.  2024. 80,  @  40/  pr.  fr.  = 

$810,  @2\%, 
Freight  from  Havre  to  New  York,  per 

"Scotland,"  £1  9«.  lid.  @  lZ^, 


Freight  and  Drayage  from  New  York  to 
Philadelphia, 

Francs  2029.86,  @  5.20, 
Gold  Premium  @  ^"i^fo, 

1872.55  fr.  cost  $792.93. 
Cost  of  1  franc,  ^l%f. 


Note. — 25  kilogrammes  B.  B.  Bristles  pay  a  spe- 
cific duty. 


216 


390 
184 


64 


00 


122 


45 


217 


575 


792 


64 


93 


10* 


114 


QUICK   SALES   AND   SMALL   PROFITS. 


If  every  3  mos.  at  8^,  $4660.96 


4  "   " 

3172.17 

6  "   '« 

2158.93 

7|  »   " 

1850.93 

»    10  "   " 

1586.87 

12  "   " 

1469.33 

2^yr8.  " 

1166.40 

194-.  The  length  of  credit  has  mtich  to  do  with  the  accu- 
mulation of  profits.  The  difference  between  long  credits  and 
short  credits  is  shown  in  their  effects  in  the  following  ex- 
ample : — 

If  a  young  man  commences  business  with  a  capital  of  §1000,  and 
is  able  to  turn  it  over  every  three  months  at  10^  profit,  in  five 
years  it  will 

Amount  to  $6727.50 

If  every  4  mos.  at  10%,  4177.25 

'  6    "  "  2593.74 

7J  "  "  2143.59 

10    "  "  1771.56 

12    "  "  1610.51 

2Jyrs.  "  1210.00 

195.  One  of  the  practical  questions  to  be  determined  when  re- 
ducing prices,  is.  Can  enough  more  goods  be  sold  at  the  reduced 
price  to  compensate  for  the  reduced  profits  ? 

QUICK  SALES   AND   SMALL   PROFITS. 

A  man  commenced  business  on  a  borrowed  capital  of 
64000,  and  paid  interest  monthly  at  the  rate  of  6%  per  an- 
num,— that  is,  $20  per  month.  His  expenses  were  §180  per 
month  additional.  He  invariably  paid  cash,  thereby  saving 
5%  discount  on  the  invoice  price.  He  sold  his  entire  stock 
every  month  at  an  advance  of  5^  on  the  invoice  price,  and 
immediately  reinvested  the  proceeds.  What  profit  did  he 
make  by  the  end  of  the  year?  Ans.  $4879.18. 


ECONOMY  THE   SOURCE  OF  WEALTH. 

At  compound  interest,  in  ten  years, 

2|  cts.  a  day,  or  $10  a  year,  will  become  $130. 

11  "  40  "  "  520. 

27J  «  100  "  «         1300. 

50  "  182.50      «  "         2305. 

100  «  365  "  "         4814. 


MARKING   GOODS.  115 


MARKING  GOODS. 

196.  It  is  customary  in  many  mercantile  houses  to  use  a 
private  mark,  which  is  placed  on  the  goods  to  denote  their 
cost  and  selling  price.  A  word  or  phrase  containing  ten 
different  letters  is  taken,  the  letters  of  which  are  written  in- 
stead of  figures.  For  instance,  the  word  "Cumberland"  is 
selected;  then  the  letters  represent  the  figures  as  follows: — 

Cumberland 
123  4  567890 

If  it  is  required  to  mark  1.50,  it  is  done  thus,  ced;  75 
would  be  le;  37,  ml,  &c. 

Blacksmith,  Importance,  Republican,  Perth  Amboy,  Fair 
Spoken,  Now  be  sharp.  Noisy  Table,  and  Cash  Profit,  are 
among  the  words  and  phrases  which  can  be  used  in  this 
manner. 

197.  It  sometimes  happens  that  the  selling  price  contains 
three  figures,  while  the  buying  price  contains  but  two.  To 
prevent  this  difference  from  being  noticed,  the  letter  denoting 
the  cipher  is  prefixed  to  the  buying  price.  For  instance,  if 
the  buying  price  was  87,  it  would  be  marked  dal;  and  the 
selling  price,  1.25,  cue;  thus  giving  each  price  three  letters. 

198.  An  extra  letter,  called  a  "  Repeater,"  is  used  to  pre- 
vent the  repetition  of  a  figure.  Instead  of  writing  cdd  for 
100,  which  would  show  at  once  that  the  two  right-hand  figures 
were  alike,  and  thus  aid  in  giving  a  clue  to  the  key-word, 
some  additional  letter  would  be  selected  for  a  repeater, — -y, 
for  instance, — and  then  the  price  would  be  written  cdy )  225 
would  be  written  uye. 

199.  Instead  of  letters,  arbitrary  characters  are  frequently 
used,  something  like  the  following : — 

.jzTi][\nx:i:_Ln 

1234567890 


116 


PRODUCTION   OF   GOLD   AND   SILVER. 


Fractions  may  be  designated  by  additional  letters  or  charac- 
ters. Thus, /may  represent  i,  w  %,  &c.;  or  i  may  be  written 
O,  i  -|-,  &c. 

200.  The  marks  on  packages,  barrels,  &c.  are  often  some 
arbitrary  mark,  or  letter  selected  at  random,  or  the  initials  of 
the  purchaser  placed  there  for  the  purpose  of  showing  that 
the  goods  belong  to  some  particular  lot,  and  are  put  on  for 
the  sake  of  distinction  merely. 

What  is  the  profit,  and  what  the  selling  price,  of  the  fol- 
lowing?— 


Gain. 

SelUng  Price 

First  cost, 

$1.10, 

Freight,  10%, 

20%, 

.60, 

20%, 

10%, 

1.00, 

30%, 

4.80, 

15%, 

2.50, 

10%, 

20%, 

1.75, 

5%, 

3.00, 

Charges,  7J%, 

25%, 

Mark   the 

selling 

price   of  the 

above. 

using   the   w 

'  Cumberland"  instead  of  figures. 

Annual  Production  of  the  Gold  and  Silver  Mines  of  the  World 
before  1865.     (  Value  in  Francis.) 


United  States  and  British  America 

Mexico 

New  Qranada 

Peru 

Bolivia 

Brazil 

Cliili 

Othjr  American  Countries 

Europe  and  Australia 

Africa,  India,  China,  Japan,  kc 


Silver. 


Gold. 


92,888,000 

103,444,000 

1,333,000 

28,889,000 

13,333,000 

227,.3.^3.000 

14,500.000 

17.2-22.000 

4,1.^3,000 

2,067,000 

10,-333,000 

4,ia'i.0()0 

3,617,000 

18,889,000 
6,556,000 

264,332,000 
47,784,000 
111.111,000 

283,338.000 
418,456.000 
275,555.000 

423,227,000 

977,349,000 

What  is  the  value  of  the  above  in  United  States  currency,  esti- 
mating the  franc  at  5.18  per  dollar,  and  specie  at  a  premium  of 
80%? 


DIVIDENDS   AND    INVESTMENTS.  117 


DIVIDENDS   AND  INVESTMENTS. 

201.  stocks  is  a  general  term  applied  to  the  bonds  of  the 
Government  or  State,  and  to  the  bonds  and  shares  of  incor- 
porate companies.  They  are  usually  bought  and  sold,  through 
the  medium  of  brokers,  at  the  Stock  Exchange. 

202.  Bonds  are  obligations  or  deeds  securing  the  payment 
of  a  certain  sum  of  money  on  or  before  a  future  day  ap- 
pointed. 

When  issued  by  governments  or  corporations,  they  are 
made  in  denominations  of  convenient  size,  bearing  interest 
usually  payable  semi-annually.  They  frequently  have  coupons 
or  interest-tickets  attached,  bearing  date,  amount,  signature, 
&c.,  'which  are  due  at  the  expiration  of  each  successive  half- 
year;  these  are  cut  off  as  they  are  paid,  and  held  as  receipts. 
For  temporary  loans,  Treasury  Notes  have  also  been  issued  by 
the  United  States  Government,  payable  with  interest,  some 
with  and  some  without  coupons.  Exchequer  Bills  have  been 
issued  in  England  in  the  same  manner. 

203.  A  Joint  Stock  Company  is  an  association  of  men 
having  a  capital  that  is  divided  into  shares  of  equal  value, 
which  are  transferable  and  may  be  bought  and  sold  like  any 
other  property. 

204.  Certificates  of  Stock  are  issued  to  each  stock- 
holder, indicating  the  number  of  shares  to  which  he  is  en- 
titled. The  first  or  original  value  of  the  shares  is  called  their 
nominal  or  par  value.  When  they  sell  for  more  than  their 
par  value,  they  are  said  to  be  above  par,  or  at  a  premium; 
when  for  less,  below  par,  or  at  a  discount. 

205.  An  Instalment  is  a  certain  portion  of  the  capita] 
paid  at  a  particular  time. 

206.  An  Assessment  is  an  amount  for  which  the  stock- 
holders are  called  upon  to  make  up  deficiencies  or  losses. 

6» 


118  DIVIDENDS    AND    INVESTMENTS. 

207.  The  Gross  Earnings  consist  of  the  entire  receipts 
of  a  company. 

208.  The  afet  Earnings  are  what  remains  aft^r  the  ex- 
penses are  deducted. 

209.  The  Dividend  is  the  sum  divided  among  the  stock- 
holders from  the  gains  of  the  business. 

210.  Sometimes,  in  addition  to  the  cash  dividend,  which  is 
payable  at  a  stated  time,  the  company  declare  a  Scrip  divi- 
dend, for  which  certificates  are  issued  payable  on  the  contin- 
gency that  the  affairs  of  the  company  continue  prosperous. 
This  Scrip  bears  interest,  or  not,  as  the  company  may  deter- 
mine.    (See  Form  of  Certificate  of  Scrip.) 

211.  A  Mortgage  is  a  conveyance  of  property  as  a  pledge 
for  the  security  of  a  debt,  and  becomes  void  when  the  debt 
is  paid. 

212.  Ground-Rents  is  a  term  applied  to  leases  of  build- 
ing lots,  the  rent  of  which  is  considered  equivalent  to  the  in- 
terest on  the  valuation  of  the  land.  The  payment  is  gene- 
rally secured  by  a  claim  on  the  building  erected  oo  the 
land  occupied.  By  a  recent  law  in  Pennsylvania,  no  new 
ground-rent  can  be  made  irredeemable,  but  may  be  extin- 
guished upon  payment  of  a  sum  the  interest  of  which  is  equal 
to  the  rent  annually  paid. 

213.  Building  Eots  are  sometimes  sold  at  so  much  per 
foot.  The  price  is  obtained  by  dividing  the  interest  per 
annum  on  the  valuation  of  the  whole  lot  by  the  number  of 
feet  on  the  front ;  the  quotient  is  the  price  per  foot.  Thus, 
a  lot  valued  at  $3000,  with  a  front  of  20  feet,  is  said  to  be 
worth  S9  per  foot ;  the  interest  on  §3000,  which  is  $180  per 
annum,  being  divided  by  20,  the  number  of  feet  on  the  front, 
gives  $9  as  the  price. 

214.  The  value  of  an  investment  depends  upon  its 
security,  its  productiveness,  its  permanency,  its 
facility  of  transfer,  and  the  readiness  with  which  the 
income  derived  from  it  may  be  collected. 


THE   NATIONAL    DEBT.  119 


National  Debt  of  the  United  States. 

The  following  is  a  statement  of  the  Public  Debt  of  the 
United  States  on  the  1st  of  March,  1866 : — 


Debt  bearing  Coin  Interest. 


6  per  cent.  Bonds,  Dec.  31, 1S67,  and  July  1, 1868     .  $18,323,591.80 

5  per  cent.  Bonds,  Jan.  1,  1874         ,        .        ,        .  20,000,000.00 
b  per  cent.  Bonds,  Jan.  1,  1871 7,022,000.00 

6  per  cent.  Bonds,  Dec.  31, 18S0,  and  June  30,  1881, 

culled  6's  of  '81 282,693,100.00 

C  per  cent,  b-20  Bonds,  May  1, 1867,  or  May  1, 1882, 

int.  May  and  Nov 514,780,500.00 

6  per  cent.  5-20  Bonds,  Nov.  1, 1869,  or  Nov.  1, 1884, 

int.  May  and  Nov 100,000.000.00 

6  per  cent.  5-20  Bonds,  Nov.  1,  1870,  or  Nov.  1, 1885  61,263,000.00 

5  percent.  10-40  Bonds,  March  1, 1874,  or  March  1, 

1904            -        .  172,769.100.00 

6  per  cent.  Bonds,  Oregon  War.,  July  1, 1881          .  1,016,000.00    $1,177,867,291.80 

Debt  bearing  Currency  Interest. 

6  per  cent.  Bonds,  Union  Pacific  R.R.  Co.,  Nov.  1, 

1895 $1,632,000.00 

6  per  cent.  Bonds,  Central  Pacific  R.R.  Co.,  Jan.  16, 

1896 2,362,000.00 

4,  5,  6  per  cent.  Temporary  Loan,  ten  days'  notice 

after  thirty  days 118,577,939.50 

Certificates  of  Indebtedness  1  year  from  date        .  62,261,000.00 

1  and  2  year  5  per  cent,  notes,  1  and  2  years  from 

date 8,.53C,900.00 

3-year  Compound  Interest  Notes,  3  years  from  date,    174,012,1 41.00 

3-year  7-30  Treasury  Notes,  3  years  from  date      .        818,044,000.00    $1,185,428,980.50 

Matured  Debt  not  presented  for  Payment. 

Texas  Indemnity  Bonds $618,000.00 

3-vear  7-30  Treasm-y  Notes 167,350.00 

Bonds 81,268.00 

Treasury  Notes 118,161.64 

Temporary  Loan,  coin 1,200.00             $985,979.64 

Debt  bearing  no  Interest. 

United  States  Notes $423,435,373.00 

Fractional  Currency 27,52;i,7.34.r2 

Gold  Certificates  of  Deposit 12,627,600.00      $46:^,586,707.52 

Total  Debt $2,827,868,959.46 


120  THE   NATIONAL    DEBT. 

Th«  Pablic  Debt  of  the  United  States  on  the  1st  OF 
March,  1867 : — 

Debt  bearing  Coin  Interest. 

6  per  cent.  Bonds fiaSfWl  .350.00 

6  per  cent.  Bonds, '67  and '68        ....  ld,«7U,5U1.80 

6  per  ctint.  Bonds,  1881 283,745,2.50.00 

6  per  cent.  5-20  Bonds 9i>4,839,000.00 

Navy  Pension  Fund 12,£00,000.()0    $1,461,855,191.80 

Debt  bearing  Currency  Interest. 

6  per  cent.  Bonds $12,922,000.00 

3  year  Compound  Interest  Note.8  ....  141,308,830.00 

3  jear  7-30  Notes 632,798,050.00      $787,028,880.00 

Matured  Debt  not  presented  for  payment 14,576,689.07 

United  States  Notes $376,235,026.00 

Fractional  Cnrrency 29,514.722.-32 

Gold  Certificates  of  Deposit 18,376,180.00        424,126,528.32 

ToUl  Debt       .....'.    $2,690,587,289.19 

Amount  in  the  Treasury. 

Coin $107,271,031.12 

Currency 52.552,:i68.27         159,823,399.39 

Amount  of  Debt,  less  cash,  in  Treasury $2,530,763,889.80 

The  foregoing  is  a  correct  statement  of  the  public  debt,  as  appears 
from  the  books  and  Treasurer's  returns  in  the  Department  on  the  1st 
of  March,  1867.  (Signed)  Hugh  McCulloch, 

Secretary  of  the  Treasury. 

Reduction  of  debt  in  one  year $137,281,670.00 

Amount  in  Treasury 

March  1, 1866.    March  1, 1867. 

Coin $55,736,192  $107 ,271, Ml 

Currency 60,282,767  52.552,368 

Total $116,018,959  $159,823,399 

Debt,  less  amount  in  Treasury  March  1,  l?fi6 $2,711,850,000 

Debt,  less  amount  in  Treasury  March  1,  lt67 2,5-30,763,890 

Actual  reduction  of  debt  in  one  year $181,086,110 

At  this  rate  of  reduction,  the  entire  debt  could  be  paid  in  fifteen 
years. 

Receipts  and  Expenditures  of  the  United  States  for  the  year  ending 
June  30th,  1866. 

EXPENDITTTRES. 


From  Customs  .        .        .  $179,046,630.64 

From  Public  I*nds     .  665,031.03 

From  Direct  Tax      .        .  1,974,754.12 

From  Internal  Revenue  309,226,812.81 

From  Miscellaneous        .  65,125,966.46 

Total      .        .        .  $556,039,195.06 


Civil,  Foreign  and  Mis.      .   $41,049,965.96 
Pensions  and  Indians    .         16,253,300.44 

War 284,449.701.82 

Navy        ....  4:^,519,632.21 

Interest        ....  1-33,074.737.27 


Total  receipts $556.0.39,195.06 

Total  expenditures 518,347,337.70 

Excess  of  receipts $07,691,857.36 


$518,347,337.70 


THE  NATIONAL  DEBT.  121 

UNITED  STATES  BONDS. 

215.  The  term  **  Five-Twenties"  is  applied  to  the  6% 
gold-bearing  bonds  of  the  United  States,  to  which  twenty 
years'  half-yearly  coupons  are  attached,  but  which  may  be  paid 
off  in  gold  by  the  Government,  on  due  notice  to  the  holders, 
at  any  time  after  ^<;e  years. 

216.  The  5-20's  which  were  issued  May  1,  1862,  called 
"  Old  5-20's,''  because  they  were  the  first  issued,  are  redeem- 
able after  May  1,  1867,  payable  May  1,  1882.  They  bear 
interest  at  6  %  payable  on  May  1st  and  November  1st. 

217.  The  5-20's  of  1864  were  issued  November  1, 1864. 
Interest  payable  May  1st  and  November  1st. 

218.  The  5-30'9  of  1865,  NOVEMBER  IssuE,  bear  date 
November  1,  1865.  Interest  payable  May  1st  and  Novem- 
ber 1st. 

219.  The  5-30's  of  1865,  JuLY  IssUE,  are  issued  in 
exchange  for  7-30's,  and  bear  date  July  1,  1865.  Interest 
on  them  is  payable  January  1st  and  July  1st. 

220.  The  term  "Ten-Forties"  is  applied  to  the  5% 
gold-bearing  bonds  of  the  United  States,  to  which  half-yearly 
coupons  are  attached  for  40  years,  but  which  may  be  paid  off 
in  gold,  on  notice  to  the  holders,  at  any  time  after  10  years. 
Interest  on  them  is  payable,  on  the  $500  and  §1000  coupon 
bonds,  and  on  all  the  registered  bonds,  March  1st  and  Sep- 
tember 1st;  and  on  the  $100  and  850  coupon  bonds  yearly, 
on  March  1st. 

221.  The  **  Seven-Thirties"  represent  a  Currency  Loan 
having  3  years  to  run,  then  convertible  at  the  option  of  the 
holder  into  a  gold-interest  6^  stock  having  20  years  to  run, 
but  with  the  right  reserved  to  the  Government  of  paying  off 
the  loan  in  gold  at  any  time  after  five  years.  The  term 
*'  Seven-Thirties"  is  derived  from  the  rate  of  interest  which 
these  three  years'  convertible  notes  bear,  to  wit :  2  cents  per 

11 


122  UNITED    STATES    SECURITIES. 

day  on  each  $100,  or  for  365  days,  seven  dollars  and  thirty 
cents  on  each  $100. 

222.  The  First  Series  7-30  Treasury  Notes  are  dated 
August  15,  1864,  and  interest  on  them  is  payable  in  cur- 
rency August  15th  and  February  15th, 

223.  Second  Series  7-30  Notes,  the  same  as  first,  ex- 
cept that  they  bear  date  June  15,  1865,  and  interest  is  pay- 
able June  15th  and  December  15th.  They  are  convertible 
June  15,  1868,  either  into  5-20  bonds  or  money,  at  the 
option  of  the  holder. 

224.  The  Third  Series  7-30  Notes,  same  as  the  first 
two,  except  that  the  Government  reserves  the  right  to  pay 
the  interest  at  any  time  at  6%  in  gold  instead  of  7-^\  in  cur- 
rency, convertible  3  years  from  their  date,  viz.,  July  15, 
1865,  into  5-20's.  Interest  payable  July  15th  and  January 
15th. 

225.  The  6  per  cents,  of  1881,  sometimes  called  the 
long  or  unconditional  6%  gold-bearing  loan,  cannot  be  re- 
deemed by  the  Government  at  all,  except  by  purchase,  until 
after  the  year  1881,  making  this  the  most  desirable  of  all  the 
United  States  loans  as  a  permanent  investment.  Interest  on 
them  is  payable  January  1st  and  July  1st. 

226.  The  terms  "Greenbacks"  and  "Legal-Tenders"  are 
convertible.     All  the  Greenbacks  are  legal  tender. 


All  gold-bearing  bonds  are  either  coupon  or  registered. 

All  the  coupon  bonds  are  issued  in  denominations  of  S50, 
6100,  $500,  and  $1000.  Registered  bonds  the  same,  with 
$5000  and  $10,000  additional. 

The  7-30  Notes  are  issued  in  sums  of  $50,  $100,  $500, 
§1000,  and  $5000,  all  with  coupons  attached. 

Any  coupon  bonds  will  be  exchanged  by  the  Government 
for  re;2;istered  of  the  same  issue. 


TREASURY  REGULATIONS.  123 


UNITED  STATES  TREASURY  DEPARTMENT  REGULATIONS. 

227.  Instructions  to  Correspondents. — "Letters  re- 
lating to  the  redemption  of  public  securities,  the  conversion  of 
7  j^jj  Treasury  Notes,  or  the  exchange  of  coupon  bonds  for  regis- 
tered certificates,  should  be  addressed  to  the  Secretary  of  the 
Treasury.  Letters  relating  to  the  transfer  of  registered  stock, 
or  payment  of  interest  on  the  same,  should  be  addressed  to 
the  Register  of  the  Treasury.  The  transfer-books  are  closed 
for  thirty  days  previous  to  the  day  for  payment  of  dividends, 
and  stockholders  desiring  the  place  of  payment  changed, 
must  give  notice  to  the  Register  one  month  at  least  before  the 
day  of  payment.  When  bonds  are  sent  for  transfer,  state 
where  interest  is  to  be  made  payable,  and  always  inclose  stock 
of  difierent  loans  in  separate  letters.  When  specifying  the 
dififerent  loans,  or  referring  to  the  interest,  name  the  amount 
of  stock,  and  describe  the  loan  by  the  date  of  the  act  of 
Congress  authorizing  it.  Powers  of  attorney  for  the  assign- 
ment of  United  States  stock,  and  assignments,  must  be  pro- 
perly filled  before  transmission  to  the  Register,  as  no  blanks 
can  be  filled  in  his  office.  Powers  of  attorney  to  draw 
interest  should  be  addressed  to  the  First  Auditor  of  the 
Treasury." 

228.  The  National  Debt  of  Great  Britain  is  of  two 

kinds,  funded  and  unfunded.  When  a  certain  portion  of  the 
public  revenue  is  appropriated  for  the  payment  of  the  interest 
on  the  debt,  it  is  called  funded,  and  it  is  called  unfunded 
when  no  such  division  is  made.  Exchequer  Bills  (see 
Forms),  which  are  somewhat  similar  to  United  States  inter- 
est-bearing Treasury  Notes,  are  a  part,  of  the  unfunded 
debt.  England  has  efiected  loans  at  difierent  rates,  5,  4,  3  J, 
3  per  cent.,  &c. ;  and  one  of  the  conditions  of  such  loans  is, 
that  while  the  stipulated  interest  is  regularly  paid,  the  Gov- 
ernment cannot  be  called  upon  to  return  the  principal. 


124  NATIONAL   DEBTS. 

229.  Consols  are  a  3^  English  stock,  which  had  its 
origin  iu  the  act  of  Parliament  consolidating  several  separate 
Government  stocks,  called  in  the  act  Consolidated  Ammities, 
and  commonly  quoted,  for  brevity,  "Consols." 

The  stock,  from  its  amount,  and  the  immense  number  of 
its  holders,  is  more  sensitive  to  financial  influence  than  any 
other.  Its  dividends  are  payable  semi-annually, — January 
5th  and  July  5th. 

230,  The  other  kinds  of  stock,  bearing  S^J),  are  the  Re- 
duced  Annuities,  which  formerly  bore  a  higher  rate  of  ia- 
terest,  and  the  New  Three  per  cent.  Annuities. 


NATIONAL 

DEBTS. 

Debt. 

Population. 

Ayerage  Am( 
per  capita 

Great  Britain, 

$3,999,010,695 

30,000,000 

133.33 

United  States, 

2,827,868,959 

35,000,000 

87.70 

France, 

2,000,000,000 

36,500,000 

54.79 

Austria, 

1,580,000,000 

75,000,000 

21.06 

Eussia, 

1,395,000,000 

68,932,000 

20.23 

Italy, 

770,000,000 

21,770,000 

35.37 

Spain, 

'45,000,000 

10,000,000 

46.56 

Netherlands, 

425,000,000 

3,619,000 

117.43 

Turkey, 

255,000,000 

16,440,000 

15.51 

Prussia, 

215,000,000 

18,000,000 

11.94 

Portugal, 

165,000,000 

4,000,000 

41.25 

Hamburg, 

23,000,000 

222,000 

103.60 

Greece, 

20,000,000 

1,000,000 

20.00 

1.  What  is  the  annual  interest  on  the  debt  of  England,  at 
the  average  rate  of  3  J  per  cent.,  and  what  is  the  proportion 
for  each  inhabitant  to  pay  ? 

2.  What  is  the  annual  interest  on  the  debt  of  the  United 
States,  as  per  Statement  March  1st,  18G7,  and  how  much  is 
each  person's  share  ?  How  much  must  be  raised  by  the 
Government  annually  to  pay  the  interest  and  cancel  the  debt 
in  30  years  ? 


THE   STOCK   EXCHANGE.  125 


THE  STOCK  EXCHANGE 

231.  The  Stock  Exchange  is  an  association  organized  for 
the  purpose  of  buying  and  selling  stock.  It  is  governed  by 
stringent  regulations,  to  prevent  improper  persons  from  being 
admitted,  and  to  insure  fidelity  in  the  performance  of  en- 
gagements. The  members  are  elected  by  ballot ;  if  a  certain 
number  of  black  balls  appear  against  a  candidate,  he  is  re- 
jected. In  Philadelphia,  five  are  sufficient  to  prevent  his 
becoming  a  member. 

The  admission  fee  varies:  to  the  New  York  Stock  Ex- 
change it  is  $3000;  to  the  Philadelphia  and  the  Boston 
Stock  Exchange  it  is  $2000.  In  London  the  admission  fee 
is  20  guineas,  besides  a  yearly  subscription  of  10  guineas. 
The  fee  to  become  a  member  of  the  New  York  Open  Board 
is  $2000 ;  to  the  Gold  Board  it  is  $2500.  There  are  no 
dues  to  be  paid  in  addition,  but  members  are  fined  for  non- 
attendance. 

Rules  are  enacted  by  which  the  proceedings  of  the  Exchange 
are  governed,  disputes  settled,  and  by  which  the  prices  and 
terms  in  buying  and  selling  stocks  are  regulated.  The  charges 
in  our  large  cities  for  buying  and  selling  United  States  bonds 
are  i  per  cent.,  or  12^  cents  for  a  bond  of  $100;  for  other 
bonds,  i  per  cent.,  or  25  cents  per  $100 ;  for  shares  of  com- 
panies, J  per  cent.,  or  25  cents  per  share  when  the  par  value 
of  the  shares  is  $50  or  more ;  when  the  par  value  is  between 
$5  and  $50,  i  per  cent.,  or  12^  cents  per  share;  when  $5  or 
less,  6J  cents  per  share.  In  London,  the  commission  on  the 
sale  or  purchase  of  stock  in  the  English  or  foreign  funds  is  i, 
or  2s.  6d.  per  cent. ;  on  exchequer  bills,  Is.  per  cent. ;  on 
railway  shares,  when  over  £50  in  value,  J  per  cent,  upon  the 
value. 

Stock  is  bought  and  sold  during  the  sessions,  or  "  boards," 
as  they  are  termed,  at  which  time  a  clerk  calls  the  names  of 

11* 


126  THE   STOCK    EXCHANGE. 

the  diflFerent  stocks  in  the  market,  and  the  members  offer  to 
sell  or  to  buy  at  a  price  which  they  mention. 

A  charge  against  a  member  is  instantly  investigated,  and, 
if  he  is  found  guilty  of  misconduct,  or  fails  to  fulfil  his  en- 
gagements, he  is  expelled. 

The  Stock  Exchange  has  a  language  peculiar  to  itself.  A 
stock  "  broker"  is  one  who  receives  and  executes  orders  for 
persons  who  are  not  members  of  the  exchange.  A  stock 
"jobber"  deals  in  stocks  for  his  own  account.  A  "stag,"  or 
"  outsider,"  conducts  his  transactions  outside  the  Exchange. 

A  "  bull"  is  one  who  operates  for  a  rise  in  prices, — so  called 
from  the  nature  of  a  bull  to  toss  with  his  horns.  He  is  usually 
one  who  has  agreed  to  purchase  stock,  without  any  intention 
of  holding  or  paying  for  it,  but  with  a  view  to  sell  out  again 
before  "settling-day"  arrives.  A  "bear"  is  one  who  en- 
deavors to  depress  prices, — so  called  from  the  nature  of  a  bear 
to  tear  down  with  his  claws.  He,  generally,  has  agreed  to 
deliver  more  stock  than  he  possesses,  and  is  consequently 
obliged  to  buy  in  order  to  settle  his  account.  A  "  lame  duck" 
is  a  member  unable  to  fulfil  his  contracts,  and  is  therefore 
expelled. 

"  Opening-day"  is  the  first  day  the  books  of  a  corporation 
are  opened  after  a  dividend  has  been  declared. 

The  term  "  selling  short"  is  applied  to  sales  of  stock  which 
the  seller  does  not  own,  and  over  which  he  has  no  control. 
Securities  sold  in  this  manner  are  generally  deliverable  at  a 
specified  time,  not  exceeding  60  days.  If  the  contract  is  for 
a  longer  period  than  three  days,  the  seller  receives  interest. 

"  Seller's  option"  gives  the  person  selling  the  privilege  of 
making  delivery  at  any  time  intervening  before  the  expiration 
of  that  mentioned  in  the  contract,  by  his  giving  one  day's  notice. 
"  Buyer's  option"  gives  the  purchaser  a  claim  for  delivery  at 
any  time  before  the  maturity  of  the  contract,  by  a  similar 
notice.  The  contract  must  be  settled  at  least  by  maturity, 
unless  extended  by  mutual  agreement.     The  transactions  are 


STOCK   QUOTATIONS. 


127 


adjusted  by  delivery  of  property,  or  the  payment  in  cash  of 
the  difference  in  prices.  A  postponement  of  settling-day  is 
termed  a  "  contango."  By  a  law  in  Pennsylvania,  contracts 
for  the  sale  of  stock  to  be  executed  or  performed  at  any  future 
period  exceeding  five  judicial  days  next  ensuing  the  date  of 
such  contracts,  are  prohibited  under  heavy  penalties. 

The  "cornering"  process,  or  "getting  up  a  corner,"  is  the 
act  of  a  combination  of  operators,  and  is  always  the  result  of 
short  sales.  All  the  floating  shares  of  a  company  are  bought 
for  future  delivery,  and  when  the  stock  has  been  rendered 
scarce  in  this  manner,  the  shares  thus  bought  are  suddenly 
called  for,  to  the  loss  of  the  short  sellers,  who  are  obliged  to  buy 
at  an  advanced  rate,  or  pay  the  buyer  the  difference  in  price. 

The  following  extract  was  taken  from  the  United  States 
Gazette : — 


BKPOETED    BY   JAY  COOKE    *    CO.,  BANKERS. 


SALES. 

26000  V.  S.  5-20  bonds,  103i 

100  Reading  R.R.,  2  ds.,  Slf 
100      "           "       5  w.n., 

1000  Camden  &  Amboy  6's,  1889,  108J 

100  Reading  R.B.,  b.  30,  67f 

100  N.  Y.  Central,  b.  15  and  int.,  103 

15500  U.  S.  6's,  1881,  lots,  109J 

100  V.  S.  Treasury  7-30  F.  &  A,  lllj 

100  Catawissa  pref.  s.,  w.n.,  26 

2000  Penna.  R.R.,  2d  M.,  6'8,  lOOJ 

100  Penna.  6's,  int.  off,  104 

100      "       5'8,  99i 

400      "       R.R.  ex.  div.,  75 

600  PMla.  &  £rie  B.R.,  b.o.,  82 


EXPLANATION. 

5-20  bonds  at  $3.62J  premium. 
Railroad  stock  sold  at  2  days'  credit. 
"  "       to  be  delivered  before  flTe 

days,  without  notice. 
6  per  cent,  bonds,  due  in  1889,  at  Si  per 

cent,  premium. 
To  be  delivered  before  30  days. 

"  "  before  15  days,  with  int. 

U.  S.  6  per  cent,  bonds,  due  in  1881,  sold 

in  lots,  aggregating  $15,500. 
7-30  bonds,  interest  payable  in  February 

and  August.  A.  &  0.  means  Apr.  &  Oct. 
Catawissa  preferred  stock,  without  notice. 
Second  mortgage,  bearing  6  per  cent.  int. 
Penna.  6  per  cent,  bonds,  the  interest  last 

due  having  been  paid. 
Penna.  6  per  cent,  bonds,  bearing  6  per 

cent,  interest. 
Penna.  R.R.  shares  without  dividend. 
500  shares  at  S32,  at  buyer's  option  when 

to  take  the  stock. 
300  shares  at  S31,  at  seller's  option  when 

to  deliver  the  stock. 

The  value  of  a  given  number  of  shares  is  found  by  multi- 
plying the  number  of  shares  by  the  price  per  share. 

Note. — In  finding  the  cost  of  bonds,  the  rate  of  brokerage  may  be 
added  to  the  price,  as  the  brokerage  and  price  are  both  calculated  on  the 
tamo  amount. 


128  DIVIDENDS   AND    INVESTMENTS, 

Example  1. — ^What  must  I  pay  for  100  shares  of  Chicago 
&  Eock  Island  R.R.  stock,  purchased  at  $112.50  per  share, 
brokerage  at  i%  and  revenue  stamp  included? 

100  shares  @  $112.50,  $11250. 

i%  on  $10000,  par  value  of  100  shares,  25. 

Revenue  stamp,  Ic.  on  every  $100  of  sales,  1.13 

$11276.13 

Ex.  2.— What  will  I  receive  if  I  sell  300  shares  Cleveland 
&  Pittsburg  R.R.  stock,  @  $72.00,  after  paying  for  revenue 
stamp  and  brokerage  @  i  %  per  share  ? 

$72  X  300  =  $21600 

300  shares  at  J^  per  share  (par  value,  $50)  =  $75.00 
Revenue  stamp,  2.16 

$77.16 
$21600  —  77.16  =  $21522.84,  Ans. 

To  find  the  dividend  on  any  given  number  of  shares  of 
stock. 

Rule. — Multiply  the  par  valite  of  the  stock  hf  the  rate  of 
dividend,  and  divide  the  prodtict  hy  100. 


EXAMPLES. 

1.  If  I  own  100  shares  of  Penna.  Railroad  stock,  the  par 
value  of  which  is  $50,  how  much  will  I  receive  when  a  divi- 
dend of  5  %  is  declared  ? 

50  X  5       =  2.50,  dividend  on  1  share. 
100  X  2.50  =  250,  "       "  100  shares.      Ans.  $250. 

2.  How  much  will  a  stockholder  of  the  New  York  Central 
Railroad  Co.  receive  of  a  4%  dividend,  who  owns  500  shares, 
the  par  value  being  $100  per  share  ? 

232.  To  find  the  rate  of  dividend. 

Rule. — Multiply  the  dividend  hy  100,  and  divide  by  the 
par  value  of  the  stock. 


DIVIDENDS    AND    INVESTMENTS.  129 

EXAMPLES. 

1.  The  receipts  of  a  mining  company  in  one  year  are 
S170,000,  clear  of  all  expenses.  The  company  has  a  capital 
of  $500,000,  divided  into  shares  of  810  each.  Reserving 
§50,000  as  a  contingent  fund,  what  rate  of  dividend  can  it 
declare  for  the  year  ?  what  per  month  ?  and  how  much  can 
be  paid  on  each  share  of  stock  ? 

170000  —  50000  =  120000,  amount  to  be  divided. 
120000  X  100  =  12000000         12000000  -r-  500000  =  24. 

Ans.  24%  yearly,  2%  monthly,  20c.  per  month  on  each  share. 
Pkoof.— 24%  of  500000  =  120000,  dividend  to  be  declared. 

2.  A  man  subscribed  for  300  shares  of  stock  in  a  manu- 
facturing company,  the  par  value  of  which  was  placed  at  §50 
per  share ;  but,  after  paying  three  instalments,  amounting  to 
75%  per  cent,  of  the  par  value,  a  dividend  of  3%  was  de- 
clared. How  much  will  he  receive,  and  at  what  rate  per 
cent,  on  the  actual  cost  ? 

3%  of  50  =  1.50,  dividend  on  one  share. 

1.50  X  300  =  $450j  dividend  on  300  shares. 

75%  of  50  =  $37.50 

1.50X100  =  150.00  150.00 -f- 37.50  =  4 

Ans.  $450.     Total  dividend  =  4%  on  actual  cost. 

233.  To  find  what  rate  of  income  will  be  derived  from  a 
given  investment. 

Rule. — Multiply  the  income  by  100,  and  divide  the  product 
hy  the  amount  invested. 

EXAMPLES. 

1.  If  I  buy  railroad  stock  at  a  premium  of  6  per  cent.,  and 
pay  \  per  cent,  brokerage,  what  per  cent,  of  income  will  I  re- 
ceive if  its  annual  dividend  is  7  per  cent.  ? 

7  X  100  =  700      700  ^  106}  =  ^^  Ans.  6 j « %. 

2.  "What  per  cent,  will  I  receive  if  I  buy  stock,  which  pays 
4%  dividend,  at  a  discount  of  20%  ? 

100  —  20  =  80,  amount  invested. 
4X100  =  400        400-^80  =  5  Ans.  5%. 

I 


180  DIVIDENDS   AND   INVESTMENTS. 

3.  If  I  pay  106  for  United  States  6%  bonds,  having  15 
years  to  run,  what  per  cent,  will  I  receive  if  I  keep  them 
until  they  mature,  and  then  obtain  the  principal  ? 

6%  per  year  for  15  years  =  $90  interest. 

Principal,  100 

Total  amount  received,  190 

Cost  of  bond,  106 

Total  income,  84 

To  find  what  r«ite  is  required  for  106  to  gain  84  in  15  years,  see 
Art.  79. 

106  at  1%  =1.06  X  15  =  15.90,  interest  at  1%  for  15  years. 

15.90)8400(5.283-f  Ans.  5^s'^^%. 

7950 

4500 
3180 

13200 
12720 


4800 
4770 


Note. — Tbe  interest  on  the  semi-annual  payments  of  interest  is  also  to 
be  considered. 

4.  What  rate  per  cent,  will  be  gained  if  I  purchase  United 
States  5-20  bonds,  at  a  premium  of  8%,  if  they  are  paid  at, 
the  end  of  6  years  ?  Ans.  4||. 

234.  To  find  the  price  to  be  paid  for  stock  to  obtain  a  given 
rate  upon  the  investment. 

Rule. — Annex  two  ciphers  to  the  irate  per  cent,  which  the 
stock  produces,  and  divide  by  the  required  rate;  the  quotient 
will  be  the  price  to  be  paid. 

EXAMPLES. 

1.  At  what  price  must  railroad  stock  be  purchased,  which 
pays  6%  on  the  par  value  of  $100,  in  order  to  obtain  7% 
income  on  the  investment? 

600 ---7  =  85.71  f  Ans.  $85.71. 

2.  At  what  price  must  I  purchase  railroad  stock  of  the 
par  value  of  $50  per  share,  which  pays  a  dividend  of  6%, 
that  I  may  obtain  an  income  of  8%  on  the  investment? 

Ans.  $37.50. 


DIVIDENDS   AND   INVESTMENTS.  131 

3.  If  I  receive  9%  on  my  investment  in  a  company  which 
pays  a  dividend  of  6%,  at  what  price  did  I  purchase ? 

4.  At  what  price  must  5  ^  stock  be  purchased  in  order  to 
obtain  G^J)  on  the  investment? 

5.  At  what  premium  ought  an  8%  stock  to  sell,  to  equal 
6%  stock?  Ans.  33J. 

6.  At  what  rate  must  6%  stock  be  purchased  to  equal  8% 
stock?  to  equal  10^  stock? 

235.  To  find  what  rate  must  be  obtained,  that  a  given  sum 
invested  may  bring  a  given  income. 

Rule. — Multiply  the  given  income  hy  100,  arid  divide  the 
product  hy  the  sum  invested. 

EXAMPLE. 

If  I  invest  85000,  what  rate  per  cent,  must  I  receive  to 
obtain  an  income  of  $325  per  year  ? 

32500 -f- 5000  =  6i%. 

236.  To  find  what  sum  must  be  invested,  that  a  given  in- 
come may  be  obtained. 

Rule. — Divide  the  required  income  hy  the  rate  of  income 
per  share,  or  per  ^100,  for  the  numher  of  shares  or  honds  re- 
quired, and  multiply  the  quotient  hy  the  given  price. 

EXAMPLES. 

1.  What  sum  must  be  invested  in  United  States  6^  bonds, 
at  108,  to  realize  an  income  of  $1200  per  annum? 

$6  =r  income  per  $100,— $108  the  price  of  $100  bonds. 
1200  ^  6  =  200,  the  number  of  bonds  of  $100  each, 
200  X  108  =  21GO0. 

Ans.  821600. 

2.  What  sum  must  be  invested,  at  865  per  share,  in  rail- 
road stock  which  pays  a  dividend  of  10  %  on  the  par  value 
of  850  per  share,  in  order  to  obtain  an  income  of  8520  ? 

10^  of  850  =  85,  income  per  share. 

8520  -i-  85  =  104,  the  number  of  shares. 
104  X  865  =  86760.  Ans.  86760. 


132  DIVIDENDS    AND    INVESTMENTS. 

3.  If  United  States  Ten-Forties  are  selling  at  93,  how 
much  must  I  invest  in  them  to  obtain  a  yearly  income  of 
S1800,  after  paying  5^  income  tax? 

237.  To  find  the  par  value,  when  the  premium  or  discount 
is  given. 

Rule. — Divide  the  given  value  of  the  stock  hy  1  increased 
hy  the  rate  per  cent,  of  premium,  or  diminished  hy  the  rate 
per  cent,  of  discount. 

EXAMPLES. 

1.  Bought  Mechanics'  National  Bank  stock  for  29,  at 
which  price  I  paid  a  premium  of  16^.  What  is  the  par 
value?  Ans.  $25. 

2.  Sold  Worcester  &  Nashua  Railroad  stock  for  891.66s, 
and  received  10^  above  the  par  value.  What  is  the  par 
value?  Ans.  §83.33 J. 

3.  Bought  Philadelphia  &  Erie  Railroad  stock  for  $47, 
which  is  6  ^  below  par.     What  is  the  par  value  ? 

4.  Bought  Fulton  Bank  stock  at  500^  premium,  for  S180. 
What  is  the  par  value  of  the  shares  ?  Ans.  $30. 

238.  To  find  at  what  price  a  bond,  having  several  years  to  run, 
must  be  purchased,  that  the  interest  and  final  payment  will 
be  equivalent  to  a  given  rate  per  annum  on  the  investment. 

Rule. — I.  Find  the  Amount  of  the  given  hond. 

II.  Find  the  present  worth  of  this  amount  at  the  proposed 

rate. 

Note. — No  account  is  taken  in  this  rule  of  interest  on  the  annual  pay- 
ments of  interest. 

EXAMPLES. 

1.  What  shall  I  pay  for  a  bond  of  $100,  having  5  years  to 
run,  with  interest  at  6^,  in  order  to  make  it  an  8^  invest- 
ment? 

Amount  of  SlOO  for  5  years  =  $130. 
By  Art,  84,  130  -=-  1.40  =  92.86.  Ans.  $92.86. 

Interest  on  $92.86  at  8%  for  5  yrs.  =  37.14.     92.86  -f  37.14  =  130. 

2.  At  what  price  must  I  buy  United  States  5-20  Bonds, 
if  they  are  paid  in  4  years,  in  order  to  gain  7%  on  my  in- 
vestment ? 


STOCK   TABLE. 


133 


3.  Bought  Kentucky  State  Bonds,  bearing  5%  interest, 
payable  in  3  years,  and  received,  when  I  obtained  the  prin- 
cipal, 6%  on  my  investment.     What  did  I  pay? 

MISCELLANEOUS. 

1.  What  rate  per  cent,  will  the  purchaser  of  Philadelphia 
Bank  stock  receive  on  his  investment  if  the  premium  on  the 
stock  is  35  %  and  the  bank  pays  an  annual  dividend  of  8  %  ? 

Ans.  5|f. 

2.  Which  is  the  most  profitable, — United  States  10-40 
Bonds  purchased  at  95,  or  the  5-20  Bonds  purchased  at  105  i* 

3.  Which  is  the  better  investment,  a  ground-rent  bearing 
6%  interest,  purchased  at  98%,  or  railroad  stock  purchased 
at  10%  premium,  which  pays  an  annual  dividend  of  7%? 
and  how  much  ? 

4.  What  interest  will  a  person  receive  who  purchased 
United  States  5-20  Bonds  at  104,  if  he  sells  the  gold  re- 
ceived for  interest  at  a  premium  of  30  %  ? 


STOCK    TABLE, 

Showing  the  rate  of  Interest  received  on  Stocks  purchased,  from  25 
per  cent,  discount  to  25  per  cent  premium. 


BATE  RECEIVED  ON  STOCK  BEARING  INTEREST  AT 

Purchase 

Price. 

5  per  cent. 

6  per  cent. 

7  per  cent. 

8  per  cent. 

10  per  cent. 

75. 

6.666 

8.00 

9.333 

10.666 

13.333 

80. 

6.25 

7.50 

8.75 

10.000 

12.500 

85. 

5.882 

7.143 

8.235 

9.411 

11.764 

90. 

5.555 

6.666 

7.777 

8.888 

11.111 

95. 

5.263 

6.316 

7.263 

8.421 

10.526 

97.50 

5.128 

6.156 

7.179 

8.205 

10.256 

100. 

5.000 

6.000 

7.000 

8.000 

10.000 

105. 

4.761 

5.714 

6.666 

7.619 

9.523 

110. 

4.545 

5.454 

6.363 

7.272 

9.090 

115. 

4.347 

5.130 

6.086 

6.956 

8.695 

120. 

4.166 

5.000 

5.833 

6.666 

8.333 

125. 

4.000 

4.800 

5.600 

6.400 

8.000 

134  UNITED   STATES  BONDS  IN  EUBOFS. 


UNITED  STATES  BONDS  IN  EUROPE. 

The  Five-Twenty  Bonds  issued  in  1862,  called  the  "Old" 
5-20's,  were  the  first  known  in  Europe,  and  for  that  reason 
are  in  greatest  demand,  causing  an  adrance  over  the  issues 
of  1864  and  1865  of  IJ  to  4}  per  cent.  The  real  value  of 
the  different  issues  is  the  same. 

The  quotations  in  London,  Paris,  Frankfort,  Hamburg, 
and  other  places,  are  the  prices  of  $100  bonds  in  American 
gold.  Thus,  "Frankfort,  Feb.  9th,  U.  S.  5-20's  76 J,"  signi- 
fies that  §76.25  in  U.  S.  coin  is  the  price  of  a  bond  for  $100 

The  interest  which  has  accrued  at  the  time  of  purchast 
forms  a  part  of  the  value  of  the  bond. 

The  principal  causes  of  the  difference  in  the  quotations  on 
the  same  day  are  the  fluctuations  in  the  rate  of  exchange  and 
the  difference  in  the  basis  of  calculation. 

It  is  necessary  also  to  know  whether  the  "  old"  or  "  new" 
issue  is  meant.  The  telegraphic  report  frequently  omits  the 
date  of  issue ;  in  the  Stock  Exchange  Circular,  the  prices  of 
both  are  given. 

To  understand  the  subject  fully  requires  a  knowledge  of 
exchange  and  stock  calculations,  and  an  acquaintance  with 
the  customs  and  manner  of  dealing  among  bankers. 

Foreign  Stock  Quotations. 

(per   ATLANTIC    CABLE.) 

London,  Mar.  1.    U.  S.  5-20's,  73J. 

Illinois  Central  R.  R.,  761-. 

Erie  R.  R.,  36J. 

Paris,  "        U.  S.  5-20'8,  82*. 

Frankfort,"  "        "  76|. 

London,  Mar.  23.      «        "  74J. 

Frankfort,  "  "        "  77}. 


UNITED  STATES   BONDS   IN  EUROPE.  135 

liondon  Quotations. — The  price  quoted  in  London  is 
at  the  nominal  par  of  4s.  6c?.  per  dollar,  or  ^.44|  per  pound 
sterling.  To  this  about  9}%  must  be  added  for  the  differ- 
ence between  the  old  par  and  the  present  value  of  our  coins. 

To  obtain  the  currency  value,  the  premium  on  gold  must 
also  be  added. 

EXAMPLES. 

What  is  the  value  of  $1000  in  U.  S.  5-20  Bonds  when 
quoted  at  70  and  the  premium  on  gold  is  35%  ? 

1000 
70 


700.00  Nominal  par  value. 
9J% 


630000 
35000 


66.5000  Exchange  premium. 
700 

766.50       Value  in  American  gold. 
35% 


383250 
229950 


268.2750       Premium  on  price  in  gold. 
766.50 


1034.7750      ei03.48  in  United  States. 

To  a  resident  of  the  United  States  a  purchase  in  London  like  this 
would  require  an  addition  of  1  ^  commission,  and  interest  equal  to 
^^  more,  which  increases  the  price  to  $105.03.  The  proceeds  of  a 
sale  would  be  $1.65  less  than  $103.48  =  $101.93. 

2.  "When  gold  is  at  a  premium  of  33%,  what  will  be  re- 
ceived from  a  sale  of  $5000  U.S.  5-20'3,  at  72,  allowing 
commission  and  interest  at  1 J  %  ? 

3.  How  much  will  a  5-20  Boud  for  $5000,  purchased  in 
London,  cost,  in  currency,  when  exchange  is  109,  and  gold 
is  at  a  premium  of  30%,  allowing  commission  at  1%  ? 


136  UNITED    STATES   BONDS   IN    EUROPE. 

Paris  Quotations. — In  Paris  the  price  of  exchange 
affects  the  quotations.  On  the  Paris  Bourse  the  bonds  are 
estimated  on  the  conventional  basis  of  5  francs  to  the  dollar, 
while  the  actual  value  of  a  dollar  in  exchange  transactions  is 
5.10  and  5.15,  equal  to  a  difference  of  $2  to  §3  on  SIOO. 

London  quotations,  being  based  on  the  old  par,  require  the 
addition  of  about  9J%  and  the  difference  between  the  Paris 
Bourse  rates  and  actual  exchange  rates,  to  give  the  compara- 
tive value  of  both  places. 

Example.— February  23,  1867.  London,  U.  S.  5-20'8 
73 J;  Paris,  83}. 

Premium  on  $73.75  @  9J%,  =   $7.00 

Difference  between  Bourse  and  exch.  rates  =     2.50 

To  be  added  to  London  rate,  9.50 

73.75  +  9.50  =  83.25  Paris  rate,  as  above. 

Note. — The  difference  between  the  Bourse  rate  and  the  exchange  rate 
should  be  taken  from  the  Paris  quotations  to  obtain  the  real  price  in 
Paris. 

In  Frankfort,  when  American  gold  is  not  paid,  the  value  is 
computed  at  the  rate  of  2^  guilders  per  dollar. 

1.  On  March  1,  1867,  the  quotations  per  Atlantic  Cable 
were:  London,  U.S.  5-20's  73};  Frankfort,  76§.  In  New 
York,  exchange  on  London  the  same  day  was  109. 

Value  of  S73.25  in  London,  @9%  prem.,     79.84 
Price  in  Frankfort,  76.62 

Difference  between  London  and  Frankfort,        3.22 
With  exchange  on  Frankfort  at  41|,  the  difference  is  but 
a  trifle. 

2.  On  the  same  day,  Illinois  Central  R.  R.  stock  was  quoted 
in  London  at  76},  Erie  Railroad  at  36J.  What  are  these 
prices  equivalent  to  in  U.  S.  currency,  gold  being  at  140? 

3.  What  is  the  value  in  United  States  currency  of  a  bill 
of  exchange  on  England,  when  quoted  at  153,  which  includes 
the  exchange  premium  and  premium  on  gold? 


VALUE   OF   LIFE   INTERESTS. 


137 


VALUE  OF  LIFE  INTEEESTS,  WIDOWS'  D0WEE8,  ANNUITIES,  &c 

Extract  from  Instructions  issued  by  the  Treasury  Department,  Washington,  February 
15,  1S66. 

"  Where  legacies  are  made  payable  at  the  expiration  of  a  life  or  lives  in  being,  the 
value  of  the  legacy  will  be  estimated  by  the  Carlisle  tables  of  life  annuities,  which 
are  appended  to  these  instructions. 

"  Where  a  legacy  is  made  payable  on  a  future  contingency,  the  value  of  the  legacy 
Is  to  be  estimated  by  a  consideration  of  the  time,  certain  or  ascertainable  by  the  an- 
nuity tables,  when  the  legacy  will  become  vested. 

CARLISLE  TABLES. 


°i 

^^"z-h 

-o£3o- 

a 

i-So^ 

^■w  S  5  -  • 

»5 

■3-2  "S  . 

o  S  g  P  S  a 

o  -  S  •♦> .-  <=>" 
•3  S  =■=  a  « 

•3^2  2  . 

o  «  g  JO  E  a 

o  s 
4 

■2=2  *  o® 

<2 

og 

<-  (S>-1  c  " 
O  .fl  _.   ^ 

•H^  5  2  -s 

1! 

mm 

C4 

C  C3 

!»  •?  C  O  •"  ■» 

0 

38.72 

14.9202 

.104788 

41 

26.97 

13.2043 

.207741 

1 

44.68 

15.4325 

.074065 

42 

26.34 

13.0737 

.215680 

2 

47.55 

15.6226 

.062646 

43 

25.71 

12.9395 

.223635 

3 

49.82 

15.7521 

.054874 

44 

25.09 

12.8032 

.231812 

4 

50.76 

15.8008 

.051953 

46 

24.46 

12.6576 

.240548 

5 

51.25 

15.8252 

.050490 

46 

23.82 

12.5059 

.249646 

6 

51.17 

16.8213 

.050722 

47 

23.17 

12.3454 

.259278 

7 

50.80 

15.8029 

.051830 

48 

22.51 

12.1751 

.269494 

8 

50.24 

15.7742 

.053551 

49 

21.81 

11.9889 

.280669 

9 

49.57 

15.7385 

.055689 

50 

21.11 

11.7946 

.292324 

10 

48.82 

15.6972 

.058168 

61 

20.39 

11.5846 

.304922 

11 

48.04 

15.6523 

.060860 

52 

19.68 

11.3701 

.317792 

12 

47.27 

15.6055 

.063670 

53 

18.97 

11.1481 

.331108 

13 

46.51 

15.5573 

.066569 

64 

18.28 

10.9201 

.344791 

14 

45.75 

15.5072 

.069566 

55 

17.58 

10.6805 

.359172 

15 

45.00 

15.4558 

.072650 

56 

16.89 

10.4364 

.373815 

16 

44.27 

15.4028 

.075832 

67 

16.21 

10.1839 

.388967 

17 

43.57 

15.3601 

.078996 

68 

15.65 

9.9287 

.404276 

18 

42.87 

15.2956 

.082267 

59 

14.92 

9.6788 

.419268 

19 

42.17 

15.2384 

.085695 

60 

14.34 

9.4368 

.433789 

20 

41.46 

15.1778 

.089331 

61 

13.82 

9.2164 

447078 

21 

40.75 

15.1151 

.093095 

62 

13.31 

8.0900 

460612 

22 

40.04 

15.0500 

.097002 

63 

12.81 

8.7636 

.474183 

23 

39.31 

14.9972 

.101248 

61 

12.30 

8.5246 

.488530 

24 

38.59 

14.9068 

.105592 

66 

11.79 

8.2793 

.603231 

25 

37.86 

14.8307 

.110157 

66 

11.27 

8.0211 

.618737 

26 

37.14 

14.7521 

.114876 

67 

10.75 

7.7652 

.634690 

27 

36.41 

14.6686 

.119892 

68 

10.23 

7.4813 

.651125 

28 

35.69 

14.5829 

.125024 

69 

9.70 

7.1926 

.568446 

29 

35.00 

14.4982 

.130105 

70 

9.18 

6.9022 

.685867 

30 

34.34 

14.4123 

.136268 

71 

8.65 

6.5945 

.604328 

31 

33.68 

14.3240 

.140560 

72 

8.16 

6.3045 

.621730 

32 

33.03 

14.2343 

.145938 

73 

7.72 

6.0341 

.637953 

33 

32.36 

14.1366 

.151789 

74 

7.33 

6.7894 

.662634 

34 

31.68 

14.0344 

.167932 

75 

7.01 

6.5887 

.664681 

35 

31.00 

13.9291 

.164266 

76 

6.69 

6.3762 

.677427 

36 

30.32 

13.8174 

.170957 

77 

6.40 

5.1833 

.688999 

37 

29.64 

13.7021 

.180796 

78 

6.12 

4.9971 

.700173 

S8 

28.96 

13.5833 

.185000 

79 

6.80 

4.7763 

.713420 

39 

28.28 

13.4579 

.192630 

80 

5.61 

4.6719 

.726687 

40 

27.61 

13.3289 

.200208 

81 

6.21 

4.3604 

.738376 

12* 


138  THE    CENTAL   SYSTEM. 

Example. — If  a  person  whose  probability  of  life  is  14.34  years 
inherits  an  estate  having  a  rental  value  of  $1000  per  annum,  the 
present  worth  of  the  annuity  of  $1000  for  that  term  is  9.4368  X 
1000  =  ?943G.80,— the  valuation  on  which  he  is  taxed. 


THE   CENTAL  SYSTEM. 

The  Cental  System  has  been  adopted  by  the  Boards  of 
Trade  in  many  of  our  larger  cities ;  and  after  September  1st, 
1867,  all  grain,  seeds,  &c.  are  to  be  bought  and  sold  by  the 
"  cental,"  or  hundred  pounds,  instead  of  by  the  bushel,  as 
heretofore.  The  Philadelphia  Board  of  Trade  passed  a  reso- 
lution, to  take  effect  March  1st,  1867,  that  all  grain  be  sold 
by  the  cental,  and  that  the  proprietors  of  elevators  and  store- 
houses be  requested  to  conform  thereto,  by  making  rates  for 
storage  and  by  issuing  receipts  in  accordance  with  the  con- 
templated change. 

The  advantage  and  convenience  which  will  result  from  the 
adoption  of  this  system  must  be  apparent  on  a  moment's 
reflection. 

The  Senate  of  Pennsylvania,  also,  has  recently  passed  a  bill 
in  which  it  is  decreed  that  various  articles  shall  weigh  so 
many  pounds  to  the  bushel.  The  weights  decrease  from 
articles  weighing  eighty  pounds  to  a  bushel  down  to  those 
weighing  only  twenty.  The  effect  will  probably  be  that  all 
articles  mentioned  in  the  bill  will  be  bought  and  sold  by 
weight  instead  of  measure,  and  that  the  cental  will  thus  be 
speedily  brought  into  general  use. 

To  find  the  price  per  cental  when  the  price  per  bushel  is 
given. 

Rule. — Multiply  the  price  per  bvsTiel  hy  100,  and  divide  hy 
the  number  of  pounds. 

Example. — At  §1.38  per  bushel  for  wheat  of  the  weight 
of  60  lbs.  per  bushel,  what  is  the  price  per  cental  ? 

138  X  100  =  13800     13800  -f-  60  =  230       Ans.  $2.30. 


GAUGING.  139 

To  find  the  price  per  bushel  when  the  price  per  cental  is 
given. 

Rule. — Multiply  the  price  per  cental  hy  the  number  of 
pounds  in  a  bushel,  and  divide  by  100. 

Example. — At  $2.50  per  cental,  what  is  the  price  of  a 
bushel  of  wheat  ? 
250X60  =  15000     15000^-100  =  150       Ans.  S1.50. 

GAUGINO. 

Gauging  is  the  process  of  finding  the  contents  or  capacity 
of  casks  and  other  vessels. 

Ullage  is  the  difi'erence  between  the  actual  contents  of  a 
vessel  and  its  capacity,  or  that  part  which  is  empty. 

The  usual  manner  of  gauging  is  by  the  diagonal  rod,  which 
gives  only  approximate  results,  but  sufficiently  accurate  for 
ordinary  purposes.  • 

FOR   SMALL   CYLINDRICAL  VESSELS. 
Rule. — Multiply  the  square  of  the  diameter^  in  inches,  by 
S^,  and  that  by  the  height,  in  inches,  and  point  off  four  figures  ; 
the  result  will  be  the  capacity,  in  wine  gallons  and  decimals  of 
a  gallon. 

If  beer  gallons  are  required,  multiply  by  28  instead  of  34- 

example. 
A  can  measures  15  inches  in  diameter,  and  is  2  ft.  2  in. 
in  height.     How  many  gallons  will  it  contain  ? 

15  X  15  =  225  X  26  in.  (height)  =  5850 
5850  X  34  =  19.8900  Ans.  19y%95  gals. 

■  To  find  the  contents  of  ullage  casks. 

Rule. — When  the  cask  is  standing — 

Find  one-third  the  sum  of  the  head,  mean,  and  bung  dia- 
meters, and  square  the  residt ;  multiply  by  the  height  of  the 
fluid  in  inches,  and  that  product  by  .003^  for  wine  gallons, 
and  by  .0028  for  beer  gallons. 


140  GRAIN   MEASURE. 

To  test  the  accuracy  of  dry  measures  which  are  in  the  form 
of  a  cylinder. 

Divide  2738  hy  the  square  of  the,  diameter,  in  inches ;  the 
quotient  will  he  the  depth  for  a  lushel;  one-half  the  quotient 
will  he  the  depth  for  a  half-hvLshd;  one-quarter  of  the  quotient, 
for  a  peck,  dkc. 

To  test  the  accuracy  of  measures  for  fluids  which  are  in  the 
form  of  a  cylinder. 

Square  the  diameter,  in  inches,  for  a  divisor. 

Divide  294  for  wine  gallons. 
"       359    "  beer       " 
"      342    «  dry        " 

GRAIN  MEASURE. 

To  find  the  quantity.of  grain  in  a  bin  or  wagon. 

Rule. — Multiply  the  height,  length,  and  breadth  together,  in 
inches,  and  divide  hy  2150.4^ ;  the  quotient  vnU  be  the  num- 
ber of  bushels. 

To  find  the  quantity  of  grain  when  heaped  on  the  floor  in 
the  form  of  a  cone. 

Rule. — Square  the  depth  and  square  the  slant  height,  in 
inches;  take  their  difference  and  multiply  by  the  depth,  and 
this  product  by  .0005 ;  the  result  wiU  be  the  contents,  in  bushels. 

To  find  the  quantity  of  grain  when  heaped  against  a  straight 
wall. 

Rule. — Square  one-half  the  depth,  and  proceed  as  in  the 
previous  rule. 

Wheat  weighing  60  lbs.  yields  nearly  48  lbs.  flour. 
Rye  "         54    "       "         "        42    "    meal. 

Barley        «        48    "       "         "        37J «       " 
Oats  «        40    «      «        «        22J "       « 


STORAGE. 


141 


STORAGE. 

Storage  is  charged  at  a  certain  price  per  barrel,  bale,  box,  etc., 
according  to  regulations  adopted  by  the  Chambers  of  Commerce  or 
Boards  of  Trade  of  the  different  cities. 

All  goods  stored  are  subject  to  one  month's  storage.  In  some 
places,  if  they  remain  any  part  of  a  month  they  are  charged  for  a 
full  month ;  in  others,  after  the  first  month,  if  taken  out  within 
fifteen  days,  a  half-month  is  charged ;  if  after  fifteen  days,  a  whole 
month.  The  owners  of  the  goods  pay  for  putting  the  goods  in  store, 
stowing  away,  and  the  expenses  of  delivery. 

When  goods  are  received  and  delivered  at  the  pleasure  of  the  con- 
signor, the  dues  for  storage  are  usually  determined  by  an  average. 

To  compute  storage. 

EuLE. — Multiply  the  number  of  barrels,  or  other  articles,  first  entered, 
by  the  number  of  days  between  the  time  of  entrance  and  the  time  of  the 
first  delivery,  or  second  entrance.     Then 

Multiply  each  balance  by  the  number  of  days  it  continues  unchanged. 

The  sum  of  all  the  products  will  be  the  number  of  articles  in  store  for 
one  day.  To  find  the  number  stored  for  one  month,  divide  the  sum  of  the 
products  by  SO. 

Example. — What  is  the  cost  of  storage,  at  If  per  bushel  per 
month,  of  wheat  received  and  delivered  as  per  following  account, 
closed  Oct.  2d,  1866  ? 

Account  of  Storage  of  Wheat  received  and  delivered  for  account  of 
A.  Y.  Rodgers  ^  Co.,  St.  Louis. 


Bate. 

Received. 

Delivered. 

Balances. 

Days. 

Products. 

1866. 

July 

2 

200 

zOO 

9 

1800 

" 

11 

150 

60 

5 

250 

" 

16 

350 

400 

5 

2000 

" 

21 

300 

100 

20 

2000 

AnguBt 

10 

400 

800 

5 

2500 

" 

15 

450 

60 

6 

250 

« 

20 

60 

0 

0 

0000 

Septemb'r 

5 

200 

200 

6 

1000 

" 

10 

100 

300 

5 

1500 

" 

15 

200 

100 

17 

1700 

1250 

1150 

30)13000 

Bal.  on  hand  0< 

:t.2. 

100 

433^ 

1250 

1250 

433J  X^f  —  54.33,  Ans. 


142  PROPERTIES   OF   NUMBERS. 


PROPERTIES  OF  NUMBERS. 

Any  number  may  be  divided  by  1|,  2,  2},  ^,  or  5,  without  a  re- 
mainder, when  its  right-hand  figure  may  be  thus  divided. 

The  square  root  of  a  number  is  greater  than  any  of  its  prime 
factors. 

Any  number  may  be  divided  by  an  aliquot  part  of  a  hundred  when 
its  two  right-hand  figures  may  be  thus  divided. 

Any  number  may  be  divided  by  an  aliquot  part  of  a  thousand 
when  its  three  right-hand  figures  may  be  thus  divided. 

Any  number  divided  by  3  or  9  will  leave  the  same  remainder  as 
the  sum  of  its  digits  divided  by  3  or  9. 

The  difference  between  any  number  and  the  sum  of  its  digits  is  a 
multiple  of  9. 

The  difference  between  a  number  and  the  digits  of  the  same  num- 
ber arranged  in  another  order  is  always  divisible  by  9. 

MISCELLANEOUS  RULES. 

To  find  two  numbers  when  their  sum  and  difference  are  given. 

Rule. — Add  one-half  their  sum  to  one-half  their  difference,  for  the 
larger  number,  and  take  one-half  their  difference  from  one-half  their  sum, 
for  the  smaller. 

To  find  two  numbers  when  their  sum  and  product  are  given. 

Rule. — Take  the  square  root  of  the  difference  between  the  square  of 
the  sum  and  four  times  their  product ;  the  result  will  be  the  difference  be- 
tween the  numbers. 

To  find  two  numbers  when  their  difference  and  product  are  given. 

Rule, — To  the  square  of  their  difference  add  four  times  the  product, 
and  the  square  root  of  the  sum  will  be  the  sum  of  the  numbers. 

To  find  two  numbers  when  their  sum  and  quotient  are  given. 

Rule. — Divide  the  sum  by  the  quotient  increased  by  1;  the  result  will 
be  the  smaller  number. 

To  find  two  numbers  when  their  difference  and  quotient  are  given. 

Rule. — Divide  the  difference  by  the  quotient  less  i,  for  the  smaller 
number. 

To  find  two  numbers  when  their  sum  and  the  sum  of  their  squares 
are  given. 


RULES   IN   MENSURATION.  143 

RtltE. — From  the  square  of  their  sum  take  the  sum  of  their  squares, 
and  half  the  remainder  will  be  the  product ;  then  proceed  by  Rule  above. 

To  find  two  numbers  when  their  sum  and  the  diflFerence  of  their 
squares  are  given. 

Rule. — Divide  the  difference  of  their  squares  by  their  sum  ;  the  quo- 
tient will  be  their  difference. 

To  find  two  numbers  when  their  product  and  quotient  are  given. 

Rule. — Divide  the  product  by  the  quotient,  and  the  square  root  of  the 
result  will  be  the  smaller  number. 

To  find  two  numbers  when  the  square  of  their  sum  and  the  sum 
of  their  squares  are  given. 

Rule. — From  the  square  of  the  sum  take  the  sum  of  the  squares  ;  the 
remainder  will  be  twice  the  product  of  the  numbers.  Subtract  four  times 
the  product  from  the  square  of  the  sum,  and  the  remainder  will  be  the 
square  of  their  difference.  Extract  the  roots,  and  proceed  as  in  Rule 
above. 

RULES   IN    MENSURATION. 

To  find  the  contents  of  an  irregular  body. 

Immerse  the  body  in  a  vessel  full  of  water,  and  measure  the  quantity 
of  water  displaced. 

To  find  the  area  of  a  rectangle. 

Multiply  the  length  by  the  breadth. 

To  find  the  area  of  a  triangle. 

Multiply  the  base  by  one-half  the  altitude.     Or, 

From  half  the  sum  of  the  three  sides  subtract  each  side  separately  ; 
multiply  together  the  half  sum  and  the  three  remainders,  and  extract  the 
square  root  of  the  product. 

To  find  the  circumference  of  a  circle. 

Multiply  the  diameter  by  S.  14156,  or  S}f. 

To  find  the  diameter  of  a  circle. 

Divide  the  circumference  by  3.14156  ;  or  multiply  it  by  .318309. 

To  find  the  area  of  a  circle. 

Multiply  half  the  diameter  by  half  the  circumference.     Or, 

Multiply  the  square  of  the  diameter  by  .785398. 

To  find  the  side  of  a  square  equal  to  a  given  circle. 

Multiply  the  diameter  by  .886227,  or  i^  of  ■/ 3. 14156. 


144 


KULES   IN   MENSURATION. 


To  find  the  diameter  of  a  circle  equal  to  a  glTen  square. 
Multiply  the  side  of  the  square  by  1.128S8. 
To  find  the  side  of  an  inscribed  square. 

Multiply  the  diameter  by  .707106,  or  <^o  ;   or  the  circumference  by 
£25079. 

To  find  the  side  of  the  largest  inscribed  equilateral  triangle. 
Multiply  the  diameter  by  .866025. 
To  find  the  circumference  from  an  inscribed  square. 
Divide  the  side  of  the  square  by  .225079. 

To  find  the  diameter  of  the  three  largest  equal  circles  that  can  be 
inscribed  in  a  given  circle. 

Divide  the  diameter  of  the  given  circle  by  2.155. 

To  find  *he  contents  of  a  cube. 

Multiply  three  sides  together. 

To  find  the  surface  of  a  cube. 

Multiply  the  square  of  the  length  of  one  of  its  sides  by  6. 

To  find  the  surface  of  a  sphere. 

Multiply  the  diameter  by  the  circumference. 

To  find  the  solidity  of  a  sphere. 

Multiply  the  square  of  the  diameter  by  3.1416.     Or, 

Multiply  the  cube  of  the  diameter  by  .5236. 

To  find  the  solidity  of  a  cylinder. 
Multiply  the  area  of  one  end  by  the  length. 


A  CUBIC   FOOT  OF 


Pounds. 

Pounds. 

Loose  earth  or  sand 

weighs 

95 

Clay  and  stones  weighs 

160 

Common  soil 

124 

Cork 

15 

Strong       «* 

127 

Tallow 

59 

Clay 

135 

Bricks 

125 

Lead 

708| 

Marble 

171 

Brass 

534f 

Granite 

165 

Copper 

555 

Sea-water 

e^i^. 

■yVrought  iron 

486| 

Oak  wood 

55 

Anthracite  coal 

50  to  55 

Red  pine 

42 

Bituminous    " 

45  to  55 

White  pine 

30 

Charcoal  (hard  wood) " 


18J 


Charcoal  (pine  wood)  weighs  18 


BUSINESS    FORMS 


AND 


INFORMATIONS^ 


K  13 


145 


BUSINESS   MAXIMS. 


Endeavor  to  be  perfect  in  the  calling  in  which  you  are 
engaged. 

Think  nothing  insignificant  which  has  a  bearing  upon  your 
success. 

There  is  more  in  the  use  of  advantages  than  in  the  measure 
of  them. 

Make  no  investments  without  a  full  acquaintance  with  their 
nature  and  condition ;  and  select  such  investments  as  have 
intrinsic  value. 

Of  two  investments,  choose  that  which  will  best  promote 
your  regular  business. 

Become  known, — and  favorably  known. 

Never  refuse  a  choice  when  you  can  get  it. 

Goods  well  bought  are  half  sold. 

Goods  in  store  are  better  than  bad  debts. 

Nothing  valuable  is  lost  by  civility. 

By  prosecuting  a  useful  business  energetically,  humanity  is 
benefited. 

Keep  accurate  accounts,  and  know  the  exact  condition  of 
your  afiairs. 

Be  economical :  a  gain  usually  requires  expense  ;  what  is 
saved  is  clear. 

Reality  makes  no  allowances  for  wishes  or  bad  plans. 

146 


PAYMENTS  AND  LEGAL  TENDER. 


The  law  gives  the  debtor  who  owes  several  debts  to  the 
same  creditor,  the  right  to  apply  a  voluntary  payment,  at  the 
time  of  making  it,  to  whichever  debt  he  prefers.  If  the 
debtor  does  not  exercise  the  right,  it  passes  to  the  creditor ; 
and  if  neither  party  makes  an  application  of  it,  the  law  will 
apply  it  according  to  its  own  view  of  the  intrinsic  justice  and 
equity  of  the  case. 

Payment  of  debts  cannot  be  enforced  after  the  lapse  of  a 
certain  number  of  years,  which  are  specified  in  the  several 
States  in  what  are  called  the  statutes  of  limitations. 

STATUTE  LIMITATIONS  IN  THE  UNITED  STATES. 


NAMES  OF  STATES. 

g 

•< 

0 

S 

a 

o 

S 

bX) 

NAMES  OF  STATES. 

f3 

g 

£> 

42 
o 

•a 

p 

O. 

o 

n 

o 

K 

i-s 

O 

t5 

i-sT 

Yrs. 

Yrs. 

Yra 

Yrs. 

Yrs. 

Yrs. 

Alabama, 

3 

6 

20 

Minnesota, 

•  •• 

6 

10 

Arkansas, 

3 

5 

10 

Mississippi, 

3 

6 

7 

California, 

1 

4 

5 

Missouri, 

5 

10 

20 

Connecticut, 

6 

6 

17 

New  Hampshire, 

6 

20 

Delaware, 

3 

6 

"  New  Jersey, 

6 

16 

16 

Florida, 

6 

5 

•  •• 

New  York, 

6 

6 

20 

Georgia, 

4 

6 

20 

North  Carolina, 

3 

3 

... 

Illinois, 

5 

5 

20 

Ohio, 

6 

15 

... 

Indiana, 

6 

20 

20 

Pennsylvania, 

6 

6 

20 

Iowa, 

... 

10 

20 

Rhode  Island, 

6 

6 

20 

Kentucky, 

1 

5 

15 

South  Carolina, 

4 

4 

...• 

Louisiana, 

3 

5 

•  •• 

Tennessee, 

3 

6 

16 

Maine, 

6 

6 

20 

Texas, 

2 

4 

Maryland, 

3 

3 

12 

Vermont, 

6 

14 

"s 

Massachusetts, 

6 

6 

Virginia  (store  %  2y) 

6 

5 

20 

Michigan, 

6 

6 

... 

Wisconsin, 

6 

6 

... 

147 


148  PAYMENTS   AND   LEGAL   TENDER. 

la  some  States,  to  renew  the  obligation  and  take  the  case 
out  of  the  operation  of  the  statute  of  limitations,  it  is  neces- 
sary that  a  promise  to  pay,  or  acknowledgment  of  the  debt, 
be  made  in  writing ;  in  others,  a  payment  made,  or  an  acknow- 
ledgment and  promise  to  pay  to  the  creditor,  in  the  presence 
of  witnesses,  is  sufficient. 

The  tender  of  payment  of  a  debt,  duly  made,  operates  in 
bar  of  any  claim  for  damages  and  interest,  and  also  in  bar  of 
the  costs  of  an  action  brought  to  recover  the  debt.  A  creditor 
who  refuses  a  tender,  sufficient  in  amount  and  duly  made, 
cannot  afterwards,  for  the  purpose  of  oppression  or  extortion, 
avail  himself  of  his  refusal.  The  debtor,  however,  remains 
liable  to  pay  whenever  called  upon. 

A  man  to  whom  payment  is  made  is  not  bound,  under 
ordinary  circumstances,  to  give  a  receipt  or  to  make  change. 

A  payment  made  to  the  proper  person,  in  "  lawful  money 
of  the  United  States,"  is  indisputably  good. 

By  an  act  of  Congress,  the  payment  of  debts  with  coin  is 
regulated  as  follows  : — 

All  gold  coins,  at  their  respective  values,  for  any  amount. 

The  half-dollar,  quarter-dollar,  dime,  and  half-dime,  at 
their  respective  values,  for  debts  under  five  dollars. 

Three-cent  pieces,  for  debts  of  any  amount  under  thirty 
cents. 

The  one-cent  pieces,  for  debts  of  any  amount  under  ten 
cents. 

The  Treasury  notes,  called  "  greenbacks,"  are  ako  a  legal 
tender. 

Bank  notes  are  a  good  tender,  unless  expressly  objected  to, 
if  the  bank  is  in  good  credit. 

A  payment  made  in  counterfeit  coin  or  notes  is  no  payment, 
if  the  receiver  gives  notice  to  the  payer  within  a  reasonable 
time  that  the  coin  or  notes  are  counterfeit. 

The  taking  of  a  promissory  note  for  a  pre-existing  debt,  or 
a  contemporaneous  consideration,  is  treated  prima  facie  as  a 


PAYMENTS  AND  LEGAL  TENDER.       149 

conditional  payment  only ;  that  is,  as  payment  only  if  it  is 
duly  paid  at  maturity. 

When  the  creditor  voluntarily,  having  free  choice,  and 
not  from  necessity,  accepts  the  promissory  note  or  bill  of  a 
thh'd  person  for  a  pre-existing  debt,  the  debt  is  extinguished, 
though  the  security  may  prove  to  be  worthless. 

When  money  is  remitted  hy  mail  to  the  creditor,  the  debt 
is  discharged  if  the  debtor  can  show  that  the  letter  contain- 
ing the  money  was  properly  mailed,  and  that  it  was  done  in 
accordance  with  the  express  direction  of  the  creditor,  or  a 
custom  from  which  such  authority  might  be  implied.  If  this 
can  be  shown,  and  a  loss  occurs,  it  is  the  loss  of  the  creditor ; 
if  otherwise,  it  is  the  loss  of  the  debtor. 

The  receiver  of  a  check,  if  he  receives  it  in  the  town  or 
city  where  it  is  payable,  should  present  it  for  payment  to 
the  bank  or  bankers,  at  the  farthest^  on  the  next  succeeding 
day  after  it  is  received.  If  payment  is  not  thus  demanded, 
and  the  bank  or  bankers  should  fail  before  the  check  is  pre- 
sented, the  loss  will  be  the  loss  of  the  holder. 

A  creditor  is  not  bound  to  accept  a  check  remitted  to  him, 
and  he  may  commence  a  suit  for  debt  even  while  the  check 
remains  in  his  hands. 

Money  paid  voluntarily  in  a  transaction,  with  full  know- 
ledge of  the  facts,  cannot  be  recovered. 

Interest  is  not  due  on  a  note  except  from  maturity,  unless 
it  is  so  mentioned  in  the  note. 

One  claim  may  be  set  off  against  another,  when  it  exists 
at  the  commencement  of  a  suit  and  in  the  claimant's  own 
right. 

When  part  of  a  claim  is  admitted,  the  debtor  should  ten- 
der the  amount  admitted ;  this  will  relieve  him  from  costs, 
if  the  disputed  portion  is  decided  in  his  favor. 

13* 


150  RECEIPTS. 


RECEIPTS. 

A  Eeceipt  is  an  acknowledgment  in  writing  tliat  a  sum 
of  money,  or  other  consideration  of  value,  has  been  re- 
ceived. A  receipt  is  evidence  of  a  payment  against  the 
person  who  signs  it,  and  is  a  voucher  used  by  agents  to 
prove  the  correctness  of  their  accounts.  It  is  also  evi- 
dence in  proving  facts  quite  distinct  from  the  payment 
stated  in  it. 

A  Simple  Receipt  is  merely  written  evidence  :  it  does  not 
exclude  verbal  evidence  of  payment;  and  upon  satisfactory 
proof  that  it  was  obtained  by  fraud,  or  given  under  error  or 
a  mistake  as  to  facts,  it  may  be  inquired  into  and  corrected  at 
law  or  equity. 

A  man  is  not  bound  by  law  to  give  a  receipt;  although,  by 
universal  custom  and  courtesy  of  business,  receipts  are  gene- 
rally given  when  desired.  When  refused,  the  facts  may  be 
proved  by  witnesses. 

A  full  and  complete  receipt  states, — 
That  a  payment  has  been  received. 
The  date  of  the  payment. 
The  amount  or  article  received. 

From  whom;  and  if  for  another,  on  whose  behalf  pay- 
ment is  made. 
To  what  debt  or  purpose  it  is  to  be  applied. 
By  whom  received;  and  if  for  another,  on  whose  behalf 
it  was  received. 
When  the  receipt  is  signed  by  the  very  person  to  whom 
the  payment  is  ultimately  to  go,  his  signature  is  sufficient. 
Where  the  receipt  is  made  out  and  signed  by  an  agent,  he 
may  either  write  the  receipt  as  if  the  principal  himself  were 
to   sign   it,   then   write   his   principal's    name    underneath, 


BECEIPTS.  151 

and  his  own  name  below  his  principal's,  using  the  prefix 
"per"  or  "by,"  to  signify  the  agency,  in  the  following 
manner : — 

Received,  &c. 

Edward  M.  Sawyer^ 

per  John  T.  Warren. 

Or,  he  may  draw  up  the  receipt  for  himself,  and  sign  it 
in  his  own  name,  mentioning  in  the  body  of  it,  however, 
that  he  received  the  money  "for"  or  "on  account  of"  his 
principal. 

The  first  form  is  more  suitable  for  an  agent  who  acts  as  a 
mere  messenger  to  take  the  money  and  is  not  authorized  to 
assume  any  responsibility  or  exercise  any  discretion  in  respect 
to  the  case.     Clerks  in  stores  are  of  this  class. 

The  last  form  is  suitable  for  an  agent  of  more  extended 
powers:  of  this  class  are  lawyers,  to  whom  collections  are 
intrusted. 

The  most  important  of  all  the  special  clauses  in  the  receipt 
is  that  which  defines  the  debt  or  purpose  to  which  the  pay- 
ment is  to  be  applied. 

Payments  upon  Account. — When,  for  want  of  time,  or  other 
circumstances,  a  payment  is  made  in  part,  or  with  the  inten- 
tion to  leave  the  application  of  it  to  future  adjustment,  it  is 
common  to  state  that  the  money  was  "received  on  account." 

Paynients  upon  a  Specified  Debt. — When  a  payment  is 
made,  and  the  debt  intended  to  be  paid  is  clearly  distin- 
guished, the  receipt,  as  evidence  of  application,  can  only  be 
set  aside  by  proof  of  fraud  or  serious  mistake. 

Payments  in  full. — A  receipt  for  a  sum  "in  full"  of  a  debt 
mentioned  is  evidence  of  something  more  than  the  mere 
payment  of  that  sum.  The  law  infers  from  it  the  adjust- 
ment of  the  amount  due,  after  consideration  of  the  rights 
of  both  parties,  and  payment  of  the  sum  specified  as  final 
satisfaction  of  those  rights.      Receipts  "in  fuU  of  all  ac- 


152  RECEIPTS. 

counts"  do  not  affect  claims  which  are  not  properly  matters 
of  account.  Receipts  '^^  in  full  of  all  demands"  prevent  any 
further  claim  for  any  demand  whatever,  existing  and  known, 
or  which  ought  to  have  been  known,  to  the  parties  at  the 
time,  unless  some  serious  or  excusable  mistake  can  be  shown. 

Payments  to  he  accounted  for. — As  the  law  presumes  that 
when  money  is  paid  it  is  paid  in  satisfaction  of  a  debt,  it  is 
desirable,  when  money  is  received  as  a  loan  or  deposit,  or  to 
be  used  or  paid  out  for  the  benefit  of  the  party  paying  it,  to 
embody  in  the  receipt  an  admission  of  the  purpose  for  which 
it  is  received,  somewhat  as  follows : — 

Received,  &c.,  One  Hundred  Dollars,  to  be  repaid  with  in- 
terest; Received,  &c..  One  Hundred  Dollars,  to  be  accounted 
for,  or  returned;  Received,  &c..  One  Hundred  Dollars,  to  be 
expended  in  purchasing,  &c. 

Care  should  be  taken  in  drawing  a  receipt  when  the  trans- 
action involves  an  agreement,  because,  in  case  of  legal  con- 
troversy, no  explanation  inconsistent  with  its  language  can  be 
given. 

If  a  person  to  whom  a  note  is  offered  in  payment  consents 
to  receive  the  note  only  upon  the  understanding  that  if  it  be 
not  paid  when  due  he  shall  return  it  to  the  debtor  and  renew 
his  original  claim,  it  is  advisable  to  state  the  medium  of  pay- 
ment, and  that  '^  when  j)aid"  it  will  be  in  full  satisfaction  for 
the  debt. 

A  check  made  payable  to  the  creditor's  order  is  equivalent 
to  a  receipt  for  the  amount,  as  the  money  cannot  be  obtained 
until  the  check  has  been  properly  indorsed. 

It  is  not  usual  to  take  a  receipt  on  paying  a  note,  draft,  or 
other  instrument  indorsed  by  the  payee,  because  the  instru- 
ment itself,  with  the  indorsement,  is  returned,  and  thus  be- 
comes a  receipt. 

Partial  payments  indorsed  on  the  instrument  are  concise 
admissions  of  payment,  and  need  no  other  receipt.  Partial 
payments  of  a  bond  should  be  indorsed  on  the  bond. 


RECEIPTS.  153 

A  receipt  for  money  paid  to  an  estate  is  good  when  signed 
by  but  one  executor;  although  it  is  well  to  have  the  signature 
of  both. 

It  is  advisable,  when  payments  of  importance  are  made,  or 
disputes  are  apprehended,  to  take  receipts.  They  should  be 
kept  where  they  are  easy  of  access,  and  in  a  place  of  safety. 
When  not  in  a  receipt-book,  they  should  be  appropriately 
folded,  labelled,  and  filed. 

One  of  the  advantages  of  the  statutes  of  limitations  is,  that 
debtors  are  not  obliged  to  take  care  forever  of  documents 
or  vouchers  which  prove  that  a  demand  has  been  satisfied, 
and  a  limit  is  fixed  beyond  which  there  is  no  necessity  for 
producing  them. 

When  a  bill  which  is  receipted  is  retained  by  the  person  to 
whom  it  is  presented,  and  payment  is  not  made,  the  signa- 
ture at  the  foot  of  the  bill  should  be  torn  ofi"  or  defaced.  If 
payment  is  refused  after  a  receipt  has  been  delivered,  evi- 
dence may  be  given  to  that  efiect. 

Sealed  or  Special  Receipts. — The  Sealed  or  Special  Re- 
ceipt is,  in  general,  conclusive  and  absolutely  binding.  Deeds 
signed  and  sealed,  which  include  "the  receipt  of  which  is 
hereby  acknowledged,"  are  of  this  character. 

FORMS  OF  RECEIPTS. 

RECEIPT   FOR   PAYMENT   ON   ACCOUNT. 

Received,  Philadelphia,  July  5,  1865,  from  S.  H.  Crittenden  <& 
Co.,  Two  Hundred  and  Fifty  Dollars  on  account. 

$250.  RingwaU  &  Brovm. 

RECEIPT   IN   SETTLEMENT   OF  ACCOUNT. 

Philadelphia,  Nov.  11,  1866. 
Received  from  William  H.  Brown  One  Hundred  and  Twenty- 
Five  /j'V  Dollars,  in  settlement  of  account  to  date. 

^125^^.  James,  Kent,  Santee  &  Co. 


154  RECEIPTS. 


RECEIPT   IN   FULL   OF   ALL   DEMANDS. 

St.  Louis,  Jan.  10th,  1867.    Received  of  Henry  D.  Hohnei  One 
Thousand  Dollars,  in  full  of  all  demands. 

flOOO.  John  Andrews, 


RECEIPT   FOR   A   PARTICULAR   BILL. 
Rec^d,  New  York,  July  M,  1866,  from  James  O.  Atwater,  One 
Hundred  and  Thirty-Five  j'/j  Dollars,  in  payment  for  a  bill  of 
Broadcloth  of  this  date. 

$135  «A  '^'  ^"  '^^^'"'^^^  ^  ^'1 
per  B.  J.  Yates. 


RECEIPT   FOR   A   NOTE. 

Baltimore,  May  7th,  1867. 

Rec^d  from  Messrs.  Watson,  Gray  &  Co.  their  Note  of  this 
date,  at  three  months,  our  favor,  for  Twelve  Hundred  and  Twenty- 
Five  /jj^j  Dollars,  which,  wlienpaid,  will  be  in  full  for  account  ren- 
dered to  1st  instant. 

$1225  '■/  James  H.  Johnson. 


RECEIPT   FOR  RENT. 

Rec^d,  Rochester,  March  6th,  1867,  from  Porter  K.  Smith,  One 
Hundred  and  Twenty-Five  Dollars,  in  fuU  for  one  quarter's  rent 
of  House  No.  10  St.  Joseph  St. ;  due  on  1st  inst. 

$125.  George  H.  Matthews,  Trustee. 


RECEIPT   FOR   INTEREST   DUE   ON   A   BOND. 

Received,  Boston,  September  18th,  1866,  of  Gilbert  Lawrence, 
One  Hundred  and  Eighty  Dollars,  in  full  for  six  months'  interest 
due  this  day,  on  his  Bond  to  me,  bearing  d<Ue  Sept.  18th,  1864,  for 
Six  Thousand  Dollars. 

John  W.  Thornton. 


RECEIPTS.  155 

RECEIPT   FOR   SERVICES. 

Sec^d,  Lowell,  June  13th,  1866,  from  Joseph  T.  Chester  &  Co., 
Ninety-Six  Dollars,  in  full  for  services  to  date. 

^96.  Henry  T.  Chase. 

INDORSEMENT    OP   A   PARTIAL   PAYMENT    ON   A   NOTE. 

Re^d,  Phila.,  March  6th,  1867,  on  account  of  the  mthin  Note, 
Six  Hundred  Dollars. 

Walter  H.  DeHaven. 


RECEIPT   FOR   PAYMENT   BY  THE   HAND    OF  A  THIRD  PARTY. 

Be6d,  Memphis,  Dec.  30th,  186 Jf,  from  Leonard  W.  Bailey  & 
Co.,  by  tlie  hand  of  Samuel  Trumpler,  Four  Hundred  Dollars,  in 
full  for  proceeds  of  sales  of  Iron,  Invoice  bearing  date  of  Nov. 
10th,  1864. 

iiQQ  George  S.  Powell. 

RECEIPT   FOR  BORROWED   MONEY. 
(Or  Borrowed-Money  Due  BilL) 
$300.  Syracuse,  Mar.  17th,  1865. 

Borrowed  and  received,  from  William  S.  Balch,  Three  Hundred 
Dollars,  which  I  promise  to  pay  on  demand,  with  interest. 

Daniel  S.  Browning. 

SHIPPING   RECEIPT. 

Albany,  Sept.  10th,  186U.  s5  AUMny,  Sept.  10th,  186 L 

Shipped  on  board  <>      Received  from  Charles  Sansom  &  Co.,  in 

X  good  order,  on  board  the  "Isaac  Newton," 

.  .  y  bound  for  New  York,  the  packages  marked 

bound  for  Q      j     .      i      y  ? 

•^  o  ana  entered  as  below : — 

VackaoeS  <>        Marks. 

^       -^  X      M.  T.    iO  sacks  Garden  Seeds. 

Marks  X      C.  H.     100  bbls.  Oswego  Flour. 

A  Robert  L.  Brown,  Ag't. 


156 


EECEIPTS. 


When  a  large  number  of  hands  are  employed,  or  when 
payments  to  a  large  number  of  persons  are  to  be  made,  it  is 
usual  to  have  forms  of  receipts  printed,  leaving  the  date  and 
amount  to  be  filled  according  to  circumstances ;  or  a  large 
book  ruled  in  the  manner  shown  below.  Some  take  a  re- 
ceipt at  every  payment;  while  others  take  receipts  only  quar- 
terly, yearly,  or  at  other  stated  intervals,  or  when  business 
relations  are  dissolved,  and  then  in  full  to  date  of  receipt. 

The  following  is  a  convenient  form  when  a  large  number 
of  persons  are  paid  : — 

We,  the  undersigned,  do  hereby  severally  acknowledge  that  ice 
have  received  from  Matthew  Baldwin  &  Co.  the  sum9  set  opposite 
our  respective  names,  in  full  for  services  to  date. 


No. 

Date. 

Amount. 

Stamp. 

Signatures. 

1 
2 
3 

1865. 
July 

20 

Forty-Five  Dollars. 
Thirty-Seven  i*o°o  l>oaa. 
Twelve                      " 

45 
37 
12 

00 
60 
00 

Joseph  L.  Barrett 
Thomas  P.  Jones. 
Samuel  G.  Brown. 

$94 

50 

FORM    FOR   DIVIDEND   LIST   OF  JOINT    STOCK   COMPANIES. 

We,  the  subscribers,  severally  acknowledge  that  we  have  received 
from  the  Treasurer  of  the  Saratoga  Fire  Insurance  Co.,  of  New 
York,  the  sums  set  opposite  our  respective  names,  in  full  for  Divi- 
dend on  all  Stock  of  said  Company  held  by  us. 


NASfES. 

•si 

o  J 

■o 
a 
o 
12 

5 

1     1 

o  p, 
II 

8IGNATUKE8. 

Chas  L.  Somers, 
Thos.  0.  Smith, 
.70S.  T.  King, 
Philip  S.  Hall, 

100 

50 

200 

160 

20 
80 
60 

$20 

1865. 
June 

15 
16 

Chas.  L.  Somers. 
Thos.  a  Smith. 

BOOK   ACCOUNTS.  157 


BOOK  ACCOUNTS. 

Entries  of  transactions  should  be  made  at  or  near  the  time 
of  their  occurrence. 

The  time  to  make  a  charge  against  a  purchaser  is  when 
the  goods  are  ready  for  delivery. 

Entries,  to  be  admissible  as  evidence,  should  be  made  by  a 
proper  person,  and  be  without  erasure,  alteration,  or  inter- 
lineation. 

Mistakes  should  be  corrected  by  marking  the  erroneous 
entry  void^  and  then  making  a  correct  entry ;  or,  if  the  entry 
has  been  transferred  to  other  books,  by  making  another  entry 
in  explanation. 

Items  and  particulars  should  be  specified,  as  a  general 
charge  cannot  be  supported  by  this  kind  of  evidence.  The 
entry  must  be  made  for  the  purpose  of  charging  the  debtor ; 
a  mere  memorandum  for  any  other  purpose  is  insufficient. 

As  a  general  rule,  copies  of  all  important  papers,  such  as 
letters,  orders,  accounts  current,  and  account  sales,  should  be 
kept,  as  they  may  be  required  for  proof  or  reference ;  but, 
usually,  a  copy  is  not  a  voucher,  and  nothing  but  the  original 
paper  will  answer. 

To  collect  a  debt  on  the  evidence  of  a  book  account,  from 
a  person  in  a  distant  place,  a  copy  of  the  account  should  be 
made  out,  and  accompanied  with  an  affidavit  in  the  usual 
form,  setting  forth: — 1st,  that  the  above  copy  of  account  is 
correctly  taken  from  the  book  of  original  entries ;  2d,  that  the 
charges  were  made  at  or  about  the  times  of  their  respective 
dates;  3d,  that  the  goods  were  sold  and  delivered  at  or  about 
the  time  the  charges  were  made ;  4th,  that  the  charges  are 
correct  and  the  account  just;  and,  5th,  that  the  person  named 
is  not  entitled  to  any  credits.  This  affidavit  should  be  sworn 
to  before  a  magistrate  or  commissioner,  and  will  save  the 
tro-;''!o  of  producing  the  books. 

14 


158 


FORMS   OF   BILLS. 


BILLS,   INVOICES,  AND  STATEMENTS. 

A  Bill  is  a  written  description  of  particulars  or  it^ms. 

A  Bill  op  Goods,  or  Bill  of  Parcels,  is  a  description 
of  the  quantity  and  price  of  goods  sold,  with  the  time  of  the 
transaction  and  the  names  of  the  purchaser  and  seller. 

An  Invoice  is  a  full  account  of  goods  or  merchandise, 
in  which  the  marks,  numbers,  contents,  and  value  of  each 
package  are  described,  together  with  the  charges  for  commis- 
sion, insurance,  packing,  &c. 

A  Statement  is  a  synopsis  of  an  account,  or  a  brief  enu- 
meration of  bills  which  have  been  purchased  within  a  certain 
time.  Some  mercantile  houses  send  statements  monthly,  or 
at  other  regular  periods,  to  their  customers  who  purchase 
on  credit,  that  a  comparison  of  account  may  be  made,  and, 
that  if  any  error  exists,  it  may  be  remedied  in  time. 


1.  Bill 


FOKMS  OF  BILLS. 

unreceipted. 


Mr.  Henry  L.  Stone, 


EOCHESTER,  March  18,  1867. 


Bought  of  George 

S.  Thompson. 

10  lbs.  Java  CoflFee,                                  @ 
6    "    Green  Tea,                                     " 
12    "    Brown  Sugar,                                  " 
25  yds.  Muslin  (Wamsutta),                     " 
17    "     Flannel,                                        " 

1  doz.  Linen  Hdkfs., 
12  yds.  Mous.  de  laine,                            " 

.40 
1.20 
.14 
,23 
.45 

.20 

4 
6 
1 
5 

7 
3 
2 

00 
GO 
68 
75 
6.5 
00 
40 

|30 

n8 

FORMS   OF   BILLS. 


159 


2.  BUI  receipted  hy  Firm. 

New  Orleans,  December  S6, 1866. 
To  B.  H.  Fentok  &  Co.,        J)r. 


Me.  J,  J.  Bibb, 


To  48  yds.  Muslin, 

"  12     <'     Drilling, 

"  10     "     Gingham, 

"  20     "     French  Chintz, 

"  7     "     Broadcloth, 

"  2  doz.  Spools  Thread, 

"  1     "     Linen  Napkins, 

"  3J  yds.  French  Cassimere, 


.22 

.18 

.35 

.40 

3.25 

.75 

2.00 

1.90 


Bec'd  payment, 

B.  H.  Fkntos  &  Co. 


3.  Bill  receipted  hy  Chrk. 

f    Shipped  at    ) 
(  buyer's  risk,  j 


Chicago,  Feb.  19, 1867. 
Messrs.  H.  H.  Applegate, 

Terms,  Note  at  60  days.  To  JAMES  HARRIS  SON  &  Co.    Dr. 


820 

25  boxes  Cheese,    82     738,                  @     .12 

$88 

56 

10  bags  Flaxseed, 

1206  — 11  =  1195  lbs.     21||bus.,  "    3.00 

64 

02 

2  bbls.  Eggs, 

141 —6  =  135  doz.,                   "     .25 

33 

75 

3  kegs  Butter, 

295  — 31  — 6  =  258  lbs.,          «      .35 

90 

30 

6  tierces  Leaf  Lard, 

1620  — 271  =  1349  lbs.,           "      .21 

283 

20 

$359 

92 

Rec'd  t>avment. 

STAMP 

James  Harris,  Son  &  Co., 
per  L.  M.  Wilson. 

160 


FORMS    OF   BILLS. 


4.  Bill  receipted  hy  Clerk. 


Me.  Seth  W.  Osboek, 


Philadelphia,  llmo.y  7, 1867. 


0.  R  65,  page  150. 
Tekms,  U  morula. 


Bought  of  3.  M..  &  T.  H.  Saundebs. 


Packages 

N08. 

366 

20 

2  doz.  Men's  Blk.  Cassr.  Hats,                   @ 

$24.00 

$4« 

00 

" 

16 

6    "        "         "     Wool     " 

18.00 

108 

00 

" 

12 

3    "    Bovs'  Drab     "         "                         " 

15.00 

45 

00 

« 

21 

3    "    Cliild's  Fancy  Wool  Hats,                " 

15.00 

46 

00 

" 

17 

3    "    Men's  White  Canton  Hats,              " 

13.50 

40 

50 

1320 

60  prs.  Women's  Calf  Pegged  Boots,           " 

2.26 

135 

00 

1350 

96   "     Misses'        "         "        Balmorals,    " 

1.15 

110 

40 

1216 

36   "    Women's  Morocco  Welt      "            " 

2.10 

75 

60 

1301 

36   «     Child's  Kid  Pump  Boots,                  « 

60 

21 

60 

2  Cases, 

1 

50 

$630 

60 

Eeceired  payment, 

BTAHP 

J.  M.  &  T.  H.  Saukdebs, 

per  J.  L.  QcRKET. 

5.  Bin  paid  ty  Note. 

Please  examine  Packages  carefullt  for  Missi.vo  Articles. 

New  York,  January  13,  1867. 
Messrs.  Geo.  W.  McWilliams  &  Co., 
0.  B.  4,  page  75.  Bought  of  Fisher  &  CJollins. 


2          4         1 

7 

Doz.  Edgd  Muffins,    1.00,    1.20,    1.36, 

8 

15 

2 

Sets  W.  Gran.  Tea  Sets,  46  ps.,  @  $8.50, 
1          1 

17 

00 

2 

Dot  Mocco.  Pitchers,    4.60,    7.00, 

11 

50 

6 

"    Table  TnmblaB,  @  1.25, 

10      15       10       10        5 

7 

50 

60 

«    W.  Gnua.  Dishes,     50,    1.00,    1.60,    2.00,    3.00^ 

70 

00 

20 

Sets      "           Teas,  @  1.10, 

22 

00 

U 

i          i         i 
Doo.  Edg'd  Bakers,      2.00,    4.30,    6.00, 

4 

75 

^,2J»„        25       ^„_,             50 
Crate,          Box,         and  Porterage, 

2 

75 

$143 

65 

~\            Kec'd  payment  by  Mote  at  4  moa,, 

"**•*                                                   Fishee  k  C0LU5S. 

FORMS   OF    BILLS. 


161 


Mk.  James  L.  Eushton, 


BiUs  for  Services^  &c. 

WOECESTEK,  Jnly  7,  1867. 


To  Feedeeick  T.  Stoxe,    Dr. 


1867. 

Jau. 

7 

■" 

20 

May 

10 

Fflr  ProfesHonal  Services  ia  Family, 
"  5  visits  to  son,  Charles  Rushton, 
«    3     "      «    "     Henry  L.  Eushton, 


$10 
5 
3 


$18 


7. 

Me.  John  H.  Wagner, 


BUTFALO,  August  1%  1866. 
To  Wm.  H.  Tuexee,     /);■. 


1867. 
May 

11 

For  Repairing  House,  as  per  Contract, 

$25 

00 

u 

« 

"    800  feet  Hne  Boards,  @  $8, 

6 

40 

" 

" 

"    Lock  and  Key  for  door. 

2 

25 

" 

«    Nails,  Hooks,  ic, 

Eeceived  payment. 

1 

00 

$31 

05 

W.  H.  Tcsfna. 

1 

8. 
Me.  Owen  T.  Jones, 


Chicago,  July  3, 1866. 
To  Heney  G.  Langdon,    Dr. 


Pot  Instruction  of  son,  William  T.  Jones, 
in  English  branches,  3  mos., 
in  Latin,  " 

"    Instruction  of  daaghter,  Louisa  J.  Jones, 
in  English  branches,  3  mos., 
in  Music,  ** 

"    Use  of  Piano, 


Books  and  Stationery  furnished  during  the  Term, 

Received  payment, 

Henry  Q.  Lanidon, 

per  S.  Y   LiNOBOX. 
14» 


$15.00 

20.00 

$35 

$15.00 

15.00 

10.00 

40 

m, 

3 

)jf. 

$78 

162 


FORMS   OF   INVOICES. 


9.  Items  of  an  Account. 
Mb.  S.  B.  Moeehouse, 


Mechanicsville,  Jan.  1, 1867. 
To  O.  Tompkins  &  Co.         Dr. 


1866. 
Apr. 
Slay 
June 
Sept. 

5 
9 
16 
14 

5 
10 
11 

To    5  bbla.  Genesee  Flour,  extra,                             @  $15.00 
"  10  lbs.    Pearl  Starch,                                            "        .18 
"  20  "      English  Breakfast  Tea,                            "      2.25 
"     2  bblB.  Prime  Pork,                                             "    17.60 

Cr. 

By  17  yds.  English  Broadcloth,        @  $3.00,                $51.00 
"  25    "     French  Chintz,                  "      .40,                  10.00 
"   12   "     English  Beaver  Cloth,     "    3.00,                  36.00 

Balance  due, 

Settled  by  due-bill, 

0.  Tompkins  &  Co. 

$75 

1 

45 

35 

00 
80 
00 
00 

May 
July 

$156 
97 

80 
00 

$59 

80 

INVOICES— DEY   GOODS. 

Cincinnati,  Jan.  17, 1867. 
Messes.  Leonard  &  Curtis, 

BoH  of  Joseph  Cushing  &  Co. 

T^rms,  3  nios.    Note  to  your  own  order. 


L.4C. 

304 

" 

312 

540 

17 

137 

15 

801 

4267 

No.l 

142 

E.C. 

46 

2  cases  Merrimac  Prints,  80  ps.,  2804  yds.,    @     .17 


1  case  Satinets,  450  yds., 

5  ps.  Extra  Black  Cassimere,  120  vds., 
10  "    Satin  Stripe  Muslin,        200  " " 
40  Check  Square  Shawls, 

6  Imperial  Long     " 

3  ps.  Solferino  Opera  Cloth,  90  yds., 
12  Ladies'  Mourning  Long  Shawls,  60  X  120, 

2  ps.  Taffeta  Ribbons, 

5   "    Buff  Chambravs,  155  yds., 
2  "    Printed  Plaid  Flannel,  90  yds., 
15  "    Plain  Mousseliue  de  Laines, 
metres  674.1  =  730J  yds., 


.78 

$2.75 

1.30 

2.13 

11.00 

.85 
9.00 
1.50 

.42 

.52 

.28i 


Rec'd  payment, 

Jos.  CcsHi.vo  &  Co., 

per  L.  R  Taylor. 


MONTHLY   STATEMENT. 


163 


Invoice  of  TWO  packages  of  Merchandise  purchased  by  W.  B.  LoxG- 
WOETH  «fe  Co.,  and  forwarded  to  B.  G.  Babcock,  lAverpool,  for 
shipment  per  "Kangaroo"  &  S.,  bound  for  New  YOBK,/or  ac- 
count and  risk  of  Messes.  Homer,  Colladay  &  Co.,  Phila- 
delphia, and  to  them  consigned. 


#30 


#31 


7743 


2301 
2302 


\f  Fancy  Wool  Long  Shawls, 

"  "     Square    " 

7§  J  Broche  Borders,  yds. 


Cases,  Packing,  Oil-Cloth,  &c. 

\^  Fancy  Wool  Long  Shawls, 

Case,  Packing,  &c. 

Discount  on  £241 14«.  M.,  @  2^, 

Charges,  Cartage,  1/6,  Commission 
li  per  cent.,  £3  lis.  4d., 

Cash,  Ist  Sept.  1866, 
E.E. 

Glasgow,  11th  August,  1866. 

W.  B.  LONOWOETH  &  Co. 


£ 

s. 

d. 

70 

24/- 

84 

18 

17/- 

15 

6 

12 

9/- 

5 

8 

200 

1/- 

10 

200 

lOid. 

8 

15 

200 

id. 

6 

13 

4 

— 

19 

10 

131 

2 

2 

72 

23/- 

82 

16 

48 

12/- 

28 

16 

19 

6 

112 

11 

6 

243 
6 

13 

8 
10 

237 

12 

10 

3 

12 

10 

£241 

5 

s 

Other  inToices  may  be  found  under  Profit  and  Loss. 
MONTHLY  STATEMENT. 


^ottt^Ig  Statement. 

Boston,  Jan.  SI,  1867. 
Messes.  B.  H.  Beadfoed  &  Co., 

To  A.  A.  Lawrence  &  Co.        Dr. 


1867. 
Jan. 


To  Mdse.,  as  per  Bill  rendered,  @   3  months, 
"        "  "  "  "     3        " 

"       "  "  "  "  60  days, 

"        "  "  "  "     3  months, 


$75 
132 
318 
123 

$618 


164  BILLS   OF   LADING. 


BILLS  OF  LADING. 

A  Bill  of  Lading  is  a  formal  receipt  subscribed  by  the 
master  of  a  ship,  or  other  common  carrier,  acknowledging  the 
receipt  of  goods  intrusted  to  him  for  transportation,  and  bind- 
ing himself,  under  certain  exceptions,  to  deliver  them,  in  like 
good  condition  as  received,  at  the  place  and  to  the  person 
named  in  the  bill,  or  his  assigns,  for  a  remuneration  or 
freightage.  The  bill  of  lading  is  the  evidence  of  shipment 
and  the  title  to  the  goods  shipped,  and  may  be  indorsed  or 
transferred  to  other  parties. 

Three  sets  are  usually  made  out :  one  to  be  sent  to  the 
person  to  whom  the  goods  are  consigned,  one  for  the  person 
shipping  the  goods,  and  a  third  to  be  retained  by  the  carrier, 
or  master  of  the  vessel.  The  bills  of  lading  contain  a  descrip- 
tion of  the  packages  shipped,  including  their  number,  marks, 
weights,  &c. 

Common  Carriers  are  those  who  hold  themselves  out  to  carry 
all  goods  intrusted  to  them,  or  all  goods  of  a  particular  kind.  They 
are  of  two  kinds, — inland -carriers  by  land  or  water,  and  carriers  by 
sea.  They  are  answerable  for  all  losses  which  do  not  fall  within 
the  excepted  cases  of  inevitable  accident  and  the  acts  of  the  public 
enemies  of  the  country.  The  carrier  may  limit  his  responsibility  by 
agreement  with  his  customer ;  but  he  cannot  exempt  himself  by 
notice  or  agreement  from  responsibility  for  actual  negligence.  He 
has  a  lien  on  the  goods  carried,  and  may  retain  them  until  he  has 
been  paid  his  freight. 

Primage  is  an  allowance  made  for  loading  the  goods.  The  terra 
"Average"  refers  to  general  or  marine  average,  in  which,  if  loss 
arise  during  the  voyage,  the  cargo  is  required  to  bear  a  propor- 
tionate share. 

A  Manifest  is  a  list  containing  the  marks,  description,  and  num- 
ber of  packages  of  the  ship's  cargo,  together  with  the  names  of  the 
shippers  and  consignees,  and  must  be  certified  by  the  ma8t«r  of  the 
vessel  before  the  collector  of  customs,  or  the  consul. 

A  Consul  is  an  officer  appointed  by  Government  to  reside  in  a 
foreign  country,  for  the  purpose  of  protecting  the  commercial  in- 
terests of  the  subjects  of  his  own  nation.  Documents  of  any  kind 
attested  by  the  consul,  under  his  hand  and  seal  of  office,  are  ad- 
mitted as  evidence  in  courts  of  justice. 


BILLS    OF    LADING. 


165 


BILL   OF   LADING,  SIGNED   BY    3IASTER    OF   VESSEL. 


S|ipt^, 


P.M. 
P. 


18  Bales. 


#  1/18. 


Rate  20/-. 

£  «.  d. 

Freight,   6  5   9 

Primage,  5   3 


£5  11«. 


In  good  order  and  well-conditioned,  by  B.  Gal- 
lavray,  Jr.,  as  Agent,  in  and  upon  the  good  ship 
called  the  Kathleen,  whereof  is  Master  for  this 
present  voyage,  U.  E.  Roberts,  and  now  riding 
at  anchor  in  the  river  Thames,  and  bound  for 
Philadelphia,  via  Falmouth,  Eighteen  Bales 
Merchandise,  being  marked  and  numbered  as 
in  the  margin,  and  to  be  delivered  in  the  like  good 
order  and  well-conditioned,  at  the  aforesaid  Port 
of  Philadelphia  {the  act  of  God,  the  Queen's  ene- 
mies, fire,  and  all  and  every  other  dangers  and  acci- 
dents of  the  seas,  rivers,  and  navigation,  of  whatever 
nature  and  kind  soever,  excepted),  unto  Mr.  Porter 
Morgan,  Philadelphia,  or  to  his  assigns,  he  or 
they  paying  freight  for  the  said  goods,  £5  lis.,  in 
full.     Primage  and  Average  accustomed. 

^n  MituESS  whereof,  the  Master  or  Purser  of  the 
said  Ship  hath  affirmed  to  three  Bills  of  Lading, 
all  of  this  tenor  and  date,  the  one  of  which  Bills 
being  accomplished,  the  others  to  stand  void. 

Weight  and  contents  unknown ;  and  not  accountable  for 
leakage,  breakage,  or  rust.  Freight  payable  at  the  current 
rate  of  exchange  on  the  day  the  ship  enters  at  the  Custom-IIouse. 


Dated  in  London,  this  23d  day  of  Dec,  1865. 
Contents  unknown. 


U.  E.  Roberts, 

Master. 


BILL   OP   LADING   SIGNED   BY   CLERK   OP   R.R.  CO. 


Camden  &  Amboy  Eailroad  and  Transportation  Company. 

^Philadelphia,  Feb.  24.,  ^866. 
^Eccibcb,  of  Messrs.  Barclay  &  Barclay, 

30  casks  Linseed  Oil, 
Marked:— H.  L.  1.—^  1  to  30. 

To  be  transported  to  New  York,  and  delivered  to 

Mr.  H.  L.  Turner,  or  order,  upon  the  following 

TERMS: 
[Here  the  conditions  are  inserted.] 

W.  P.  Murpht, 
For  the  Company. 


166 


BILLS   OF  LADING. 


STEAMBOAT    BILL    OF    LADING. 

I^teibtb  by  the  'Wilmington  Steamboat  Line,  in  apparebtly 
good  order,  from  IL  Y.  Heald,  marked  and  entered  as  below  (con- 
tents unknown),  which  we  promise  to  deliver  at  Wilmington  (breakage 
and  leakage  excepted),  and  not  being  responsible,  if  lost,  stolen,  or 
damaged,  beyond  the  value  of  Fifty  Dollars  per  package. 

1  Case  Mercliandise. 
Masked  : — Geokge  Danbt, 

Wilmington,  Del. 

Philadelphia,  Jan.  19,  1867.  P.  T.  Simpson,  Agent. 


FREIGHT    BILL. 

rOEM  No.  69.-SEEIES  B. 

No.  12118.  Philadelphia,  J^ov.  8,  fSOG, 

Mr.  Robert  B.  Steicart, 

To  PENNSYLVANIA   R.  R.   CO.      Dr. 
For  Freight  from Mill  Creek on 


3  boxes  Apples, 

4  "      Mdse., 


Weight. 

Rate. 

Freight. 

Expenses. 

Total 

1935 
1450 

56 
60 

10 
8 

83 

70 

57 
50 

11 
9 

$20 

Sec'd  payment  for  the  Company, 

Thos.  T.  Mdbbat. 

WAREHOUSE   BECETPT. 

Syracuse,  June  f8,  /S67. 
Delivered  to  John  Cottrell  &  Co.,  in  good  order,  for  which 
they  have  paid  the  charges  thereon. 


Marks. 

Articles. 

Quantity. 

Charges. 

J.  C.  &  Co. 
X.  L. 

^    1  to  20 
jj^  20  "  30 

Oswego  Flour,  extra, 

Corn  Starch, 

Freight  from  Oswego, 
Drayage,  Storage,  &c., 

T.  &  L.  MosiEB. 

20  bbls. 
10     " 

1 
3 

50 

00 

$4 

50 

ACCOUNT   SALES.  167 


ACCOUNT  SALES. 

An  Account  of  Sales  is  a  detailed  statement  of  goods 
sold  and  the  charges  incurred  thereon,  and  is  made  for  the 
purpose  of  showing  the  net  proceeds  of  sales.  When  goods 
have  been  sold  on  commission,  the  agent  or  commission  mer- 
chant makes  out  an  account  sales,  to  be  sent  to  the  consignor, 
or  person  for  whom  the  goods  were  sold. 

Account  Sales  are  made  out  in  various  forms ;  that  form 
being  used  which  is  most  convenient  for  the  branch  of  busi- 
ness in  which  it  is  used.  Sometimes  they  are  made  out  in 
the  form  of  a  ledger  account ;  the  quantity  of  goods  sold,  with 
their  marks,  prices,  &c.,  being  entered  on  the  credit  side,  and 
the  various  charges  on  the  debit  side.  The  difference  between 
the  two  sides  exhibits  the  net  proceeds,  and  is  entered  on  the 
smaller  side,  to  produce  a  balance. 

Another  form,  and  the  one  which  is  generally  adopted,  is  to 
enter  the  sales,  with  all  the  particulars,  first,  and  the  charges 
underneath. 

When  the  goods  are  not  all  sold,  a  minute  of  those  still  on 
hand  should  accompany  the  account  sales. 

To  make  out  an  account  sales,  turn  to  the  consignment 
account  in  the  ledger,  and  from  thence  to  the  original  entries, 
to  obtain  all  the  items  affecting  the  account.  When  the  goods 
are  sold  for  cash,  or  when  the  consignor  guaranties  the  sale,  it 
is  not  necessary  to  give  the  names  of  the  purchasers;  althouj;;h 
this  is  frequently  done. 

A  del-credere  commission,  or  guaranty,  is  a  commission 
charged  for  becoming  responsible  for  the  debts  of  those  who 
purchase  the  goods  on  credit. 

Account  Sales  are  averaged  to  find  the  date  when  the  pro- 
ceeds may  be  paid  without  loss  of  interest  to  cither  party. 
(See  Average  of  Accounts.) 


168 


ACCOUNT   SALES. 


"Sist^*  ^S  \  150  bb^'.  Fi^^*-|  '•eccii'ec?  per  Barque  AURORA, /or  Account 
qf  Jaales  T.  Hoyt,  Berlin,  Md. 


1866. 

nee. 

3867. 
Jan. 


To  whom  sold. 


Jefferson  Andrews, 

R.  J.  Long, 
Cbas.  S.  Brown, 
L.  S.  Harris  k  Co., 

Henry  O.  Stone  k  C!o. 


Description. 


25  bus. 

50  bbls. 
100  bus. 
20  " 
75  bbls. 
55  bus. 
25  bbls. 


Ohio  Wheat, 

Elm  Grove  Fam.  Flour, 
Kentucky  Wheat, 
Ohio  '• 

Oregon  Fam.  Flour,  Ex., 
Ohio  Wheat, 
Flour,  Grant" 8  Mills, 


1.15 

9.60 
1.20 
1.18 
8.50 
1.10 
11.00 


CH-UIGES. 


Freight  and  Dra.vage,  $15.00 

Insurance  on  $1000,  @  IJ  per  cent.,  12.50 

Storage  and  Labor,  7.25 

Commission  and  Guaranty,  5  per  cent  on  1187.35,  59.37 

Net  Proceeds  due  per  average, ,  1867, 

Leoxarb  B.  Hudson. 
New  Yoek,  Jan.  28, 1867. 


$28 

47 
120 

2& 
637 

55 
275 


$1187 


12t  12 

$1063  23 


Account  Saks  qf  75  Bales  qf  Wool  received  per  Pennsylvania  Bail- 
road,  and  sold  for  Account  of  Messrs.  SariTH  &  W1LI.IAMS, 
Salem,  Columbiana  Co.,  Ohio. 


1866. 
Nov. 

10 

Three-quarter  blood  Merino  Fleece, 

Net  9238  lbs.,  @  60c.,                          30  days. 

5542 

80 

Dec. 

15 

Half-blood  Merino  Fleece, 

Net  2638  lbs.,  @  56c^                                " 

1450 

90 

1867. 
Jan. 

5 

Unwashed  Merino  Fleece, 

Net,                 240 

i  discount,       80    160  lbs.,  @  55c.,  30  days, 

Common  and  qnarter-blood  Fleece, 

Net  985  lbs.,  @  50c.,                            30  days. 

88 
492 

00 
50 

$7574 

20 

Ceabges.  

Freight  and  Drayage,                                        $192.33 

Commission,  including  Insurance,  Storage, 
and  Labor,  2  cents  per  lb.  on  13,101  lbs.,       262.02 

Net  Proceeds  due  Dec.  22, 1866, 

454 

35 

$7119 

85 



E.  E.                                       Thaw  &  Walker. 

. 

Philadelphia,  Jan.  10, 1867. 

ACCOUNTS   CURRENT.  169 


ACCOUNTS  CURRENT. 

♦ 
Accounts  Current  are  statements  in  detail  of  accounts 

which  have  been  open  or  running  from  one  time  to  another. 
They  are  usually  made  out  twice  a  year,  or  whenever  circum- 
stances require,  by  the  parties  desiring  settlement. 

The  object  of  an  Account  Current  is  to  furnish  the  person 
to  whom  it  is  sent  a  statement,  that  he  may  know  the  extent 
of  his  dealings,  and  what  balance  may  be  due  from  him  to 
settle  his  account. 

Accounts  Current  are  drawn  from  the  accounts  in  the 
Ledger,  with  which  they  must  agree,  and  should  contain  a 
description  of  every  transaction,  with  date,  items,  and 
amounts,  as  expressed  in  the  books  of  original  entry,  allow- 
ing for  the  difference  of  style.  When  particulars  are  not 
supplied,  reference  should  be  made  to  the  entries  or  papers 
in  which  they  may  be  found.  Interest  is  allowed,  or  not, 
according  to  custom  or  the  understanding  between  the  par- 
ties. The  time  for  which  interest  is  calculated  is  counted 
from  the  date  when  the  amount  is  due,  or  equivalent  to  cash, 
to  the  date  of  settlement.  For  the  different  methods  of  cal- 
culating the  interest,  see  Interest  Accounts.  Accounts 
Current  are  sometimes  averaged  as  in  Average  of  Accounts. 

If  there  are  errors  in  an  Account  Current  received,  it 
should  be  objected  to  within  a  reasonable  time,  or  it  becomes 
an  Account  Stated,  which  does  not  require  a  proof  of 
items. 

The  letters  E.  E.  and  E.  0.  E.,  appended  to  invoices  and 
accounts,  are  for  the  purpose  of  intimating  the  right  of  cor- 
recting errors  or  of  supplying  omissions. 

For  additional  Accounts  Current,  see  pages  47  and  49 ; 
and  for  finding  interest  on  English  Accounts,  see  Interest 
IN  England. 

15 


170 


ACCOUNTS   CURRENT. 


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ORDERS.  171 


ORDERS. 

An  Order  is  a  written  request  to  deliver  money  or  goods  to 
some  person  mentioned,  or  to  his  order,  or  to  the  bearer,  on 
account  of  the  person  signing  the  request.  It  is  used  by  the 
person  receiving  it  as  a  voucher  that  the  person  signing  it  is 
responsible,  and  that  the  thing  or  things  mentioned  have 
been  delivered.  Orders  may  be  made  negotiable;  but  the 
persons  on  whom  they  are  drawn  are  not  under  obligation  to 
pay  them  unless  they  have  been  accepted. 

ORDERS   FOR   MONEY. 

Lancaster,  Aug.  16,  1867. 
Mr.  James  T.  Fordley, 

Please  pay  to  M.  B.  Brovm,  or  order,   One  Hundred 
Dollars,  and  charge  to  our  account. 

$100.  Jos.  W.  Andrews  &  Co. 


Messrs.  Alfred  Slade  &  Co, 

Gentlemen: — Please  pay  to  Thomas  Brovm,  or  order,  Thirty 
Dollars,  due  on  my  account,  and  oblige 

Yours,  re^ectfully, 
PhUada.,  Aug.  12,  1866.  Robert  H.  Jenkins. 


ORDERS   FOR   GOODS. 

Baltimore,  Feb.  19, 1867. 
Mr,  William  B,  Linden, 

Please  pay  to  Andrew  B.  Jones,  or  bearer,  iSixfy  Dollars 
in  Goods  from  your  store,  and  place  to  account  of 

Henry  W.  Wilkins. 

Albany,  Mar.  S5,  1867. 
Mr.  Charles  Riqua, 

Please  send  me,  per  bearer,  Ten  Barrels  Flour,  Genesee 
Extra,  and  oblige 

Yours  truly,  Henry  Burnham. 


172  CHECKS. 

Dayton,  0.,  August  16,  1866. 
Messrs.  L.  A.  Tiers  &  Son, 

New  York. 

Dear  Sirs: 

Please  send  immediately  Five  (5) 
Half- Cheats  Imperial  Tea,  Hugo  &  Otto,  ^7,  as  per  sample  sent  us, 
and  oblige  Yours,  truly, 

Corhin  &  Walworth. 


St.  Louig,  Jan.  S,  1867. 
Messrs.  E.  C.  &  J.  Biddle, 

Philadelphia,  Pa. 
Gentlemen : — Please  send  us,  per  Adams  Express, 

60  Crittenden's  Booh-Keeping,  C.  H.  Edition. 
25         do.  do.  H.  S.      do. 

30  Lynd^s  Class-Book  of  Etymology. 

15  Cleveland's  American  Literature. 

16  Abop's  Algebra. 

Upon  receipt  of  your  Bill,  vnth  Goods,  we  will  remit  by  Draft  or 
Express,  as  you  may  direct. 

Respectfully,  yours, 

A.  B.  M.  Thompson.  &  Co. 


CHECKS. 


A  Check  is  a  written  order  or  request,  addressed  to  a  bank 
or  banker,  by  a  person  having  money  deposited,  requesting 
the  payment,  on  presentment,  of  a  certain  sum  of  money  to  a 
person  therein  named,  or  to  his  order,  or  to  the  bearer. 

When  drawn  payable  to  a  person  or  hearer,  it  is  transferable 
^vithout  indorsement,  and  the  holder  is  entitled  to  payment  j 
when  drawn  payable  to  a  person  or  his  order,  it  must  be  in- 
dorsed by  the  person  to  whom  the  check  is  made  payable ; 
when  made  payable  to  a  person  without  the  words  "  or  order," 
or  "bearer,"  or  to  a  particular  person  "  only,"  it  is  not  nego- 
tiable. 


CHECKS.  173 

As  checks  made  payable  to  a  person's  order  compel  the 
payee  to  indorse  them,  they  are,  when  drawn  in  this  form, 
often  used  in  lieu  of  receipts. 

The  drawer  of  a  check  may  countermand  its  payment  at 
any  time  previous  to  its  payment  or  acceptance  by  the  bank. 

A  check  received  from  others  should  be  presented  without 
unnecessary  delay,  as  the  drawer  will  not  otherwise  be  respon- 
sible for  its  payment  in  case  of  the  failure  of  the  bank. 

Every  holder  of  a  check  is  liable  to  every  subsequent 
holder  only  for  the  time  for  which  he  would  be  held  if 
originally  liable. 

A  post-dated  check  is  payable  on  the  day  of  its  date;  but, 
as  circumstances  may  arise  that  will  render  void  a  check 
which  is  payable  in  the  future,  some  prefer  dating  the  check 
with  the  day  on  which  it  is  drawn,  and  stating  in  the  body  of 
the  check  the  day  when  it  is  to  be  paid. 

When  made  payable  on  a  future  day  mentioned,  different 
from  that  of  the  date,  they  have  been  treated  as  bills  of  ex- 
change, and  as  such  are  entitled  to  days  of  grace,  and  require 
revenue  stamps,  the  same  as  bills  of  exchange. 

The  amount  of  a  check  should  always  be  written  out  in 
words.  The  amount  in  figures  is  placed  in  the  corner,  that 
the  sum  for  which  the  check  is  drawn  may  be  seen  at  a 
glance,  and  also  as  a  precaution  against  any  alteration  which 
might  be  made. 

CHECK  PAYABLE  TO  BEARER. 


lo.  7.                           Cincinnati,  fiug.  16, 1S67. 
^ay  /o .^a,mu^  ^^fP^a/Za^, <rt.  3Sealei, 

15» 


174 


CHECKS. 


^.m. 


Baltimore,  JTov.  22, 186S. 


J^^a J^^**n€^  <=SP.  .^^KyMt^, oi  ^iJ^, 

€)m»  J^jCant/leJ  a^  .=^ev«tU^ ^^q    ^Ji^U. 


CHECK   PAYABLE    AT   A   FUTURE   TIME. 


g:o.  \1%.  JTevj  TorTc,  J£a.T.  IS,  1867. 

utional  Sarfe  ©anfe, 


"^ 


Mj,  ^ ^^».  <=^   .^SZo^,  ^   &u/el, 

on  ^ne   Zytn  indT.,   to*¥nouT  alace.  tJ^ccen^ance  ^<^^eu^lfea, 

$800.  ^i<./Ua  ^t.  =Qi^««^l«w. 


CERTIFIED    CHECKS. 

A  certified  check  is  one  for  the  payment  of  which  the  bank 
becomes  responsible,  upon  being  certified,  or  marked  "  good" 
by  the  paying  teller,  with  his  signature  attached.  Certified 
checks  are  used  to  prevent  the  inconvenience  and  risk  of 
withdrawing  and  counting  sums  of  money  that  are  to  be  im- 
mediately paid  to  others.  They  are  also  used  instead  of 
drafts  for  making  remittances  to  distant  places. 


|to.  122. 


I  <Fhiladeljihia,  fipril  6,  1867. 


ttqfi,    ..^^  ^^^J-t^nam^  fit 


TRANSACTIONS    AVITH    BANKS.  175 

CERTIFICATES    OF    DEPOSIT. 

Certificates  of  Deposit  are  used  when  money  is  temporarily 
deposited,  and  no  regular  bank  account  is  kept.  When  made 
payable  to  another  person's  order,  they  are  frequently  em- 
ployed for  making  remittances,  in  the  same  manner  as  cer- 
tified checks. 


moston  Rational  ^»nk. 

^oston,  Jlass.,  Fel.  26,  1S67. 
'^icft*.       ^Va.    .^£a/vtA Xad  //eAoOti/et/ th'   yJ& 

€o  *ne  clea*%  o/^.. fittn^^/^^ ./lauaii^  t>n  ie^uin  of 

^n<j   laH^tj^ate  Aio/ierl'^^  tnaoidea. 


TRANSACTIONS  WITH   BANKS. 

Banks  are  organized  institutions  for  the  employment  of 
capital.  Banks  of  "circulation  and  deposit"  have  the  use, 
under  certain  restrictions,  of  the  capital  paid  in  by  the  stock- 
holders, the  money  belonging  to  depositors,  and  the  notes  of 
their  own  circulation.  The  National  Banks  are  required  to 
deposit  with  the  Treasurer  of  the  United  States  interest-bear- 
ing bonds  of  the  United  States,  in  proportion  to  the  capital 
stock  paid  in.  All  bonds  so  deposited  are  held  exclusively 
as  security  for  the  circulating  notes  delivered  to  the  banks 
depositing  the  bonds.  The  following  suggestions  may  be 
found  useful  to  those  who  have  dealings  with  banks : — 

Make  your  deposits  in  the  bank  as  early  in  the  day  as  you 
conveniently  can,  and  never  without  your  bank-book. 

For  your  own  security,  it  i.«?  well  to  have  one  particular 


176  TRANSACTIONS    WITH    BANKS. 

PERSON  to  do  your  business  at  the  bank,  who  shall  be  com- 
petent to  take  charge  of  the  money  and  papers  you  intrust 
to  his  care,  and  sufl5ciently  intelligent  to  understand  and  pro- 
perly deliver  the  messages  and  explanations  you  may  have 
occasion  to  make  j  also,  that  you  write  or  stamp  OVER  YOUR 
INDORSEMENT,  upon  all  checks  which  you  send  to  be  de- 
posited to  your  credit  in  the  bank,  the  words  "for  deposit 
TO  OUR  CREDIT,"  which  will  prevent  their  being  used  for  any 
other  purpose. 

Always  use  the  deposit  tickets  furnished  by  the  bank,  and 
examine  the  date  and  indorsement  of  every  check.  When 
checks  are  deposited,  the  banks  require  them  to  be  indorsed 
by  the  depositor,  whether  drawn  to  his  order  or  not. 

Keep  your  check-book,  when  not  in  use,  under  your  own 
lock  and  key.     Make  it  a  rule  to  give  checks  only  out  of 

TOUR  OWN  CHECK-BOOK. 

Draw  as  few  checks  as  possible.  When  you  have  several 
sums  to  pay,  draw  ONE  check  for  the  whole,  and  take  notes 
of  such  denominations  as  will  enable  you  to  distribute  the 
amount  among  those  you  intend  it  for. 

Do  not  allow  your  bank-book  to  run  too  long  without  being 
balanced,  and  when  returned  by  the  bank  compare  it  with 
your  own  account,  and  examine  your  cancelled  checks  without 
delay.  If  you  wish  to  preserve  your  cancelled  checks,  deface 
or  destroy  the  signature  as  soon  as  returned,  in  a  manner  that 
will  prevent  their  being  copied,  and  place  the  checks  out  of 
the  reach  of  others. 

In  filling  up  checks,  do  not  leave  space  in  which  the  amount 
may  be  increased.  It  has  been  decided  that  when  a  check  is 
so  carelessly  drawn  that  an  alteration  may  be  easily  made, 
the  loss  arising  from  the  alteration,  if  any,  must  be  borne  by 
the  drawer. 

Write  your  signature  with  your  usual  freedom,  and  never 
vary  the  style  of  it. 

Offer  notes  for  discount  or  collection  in  good  season.     Do 


COUNTERFEIT    BANK-NOTES.  177 

not  put  oflf  the  offering  of  notes  for  discount  until  the  last 
day  of  your  need.  When  notes  are  discounted  or  collected 
for  you,  hand  your  bank-book  to  the  clerk,  that  they  may  be 
entered  in  it  to  your  credit. 

COUNTERFEIT  BANK-NOTES. 

A  counterfeit  note  is  a  facsimile  of  the  genuine,  or  as 
nearly  like  it  as  it  can  be  made.  A  spurious  note  is  made  up 
of  designs  different  from  the  genuine,  and  calculated  to  pass 
where  the  genuine  is  not  known.  An  altered  note  is  one 
altered  from  a  lower  to  a  higher  denomination ;  or  one  on 
a  broken  or  bogus  bank,  on  which  the  name  or  locality  is 
changed  for  that  of  a  bank  in  good  standing. 

RULES   FOR   DETECTING   COUNTERFEIT    NOTES. 

Examine  the  vignette  or  picture  at  the  top  of  the  note  :  see  if  the 
faces  have  a  lifelike  expression  ;  if  the  eyes  are  well  defined,  show- 
ing the  pupil  distinctly,  the  white  clearly ;  see  if  the  drapery  or 
dress  fits  well,  looks  natural  and  easy,  and  shows  the  folds  distinctly 
— if  the  whole  figure  harmonizes.  See  if  the  sky  is  clear,  or  trans- 
parent, or  soft  and  even,  and  not  scratchy,  and  if  the  different  ob- 
jects have  a  finished  appearance.  In  the  genuine,  small  figures  in 
the  background  are  always  exceedingly  well  executed. 

Examine  the  medallion  rulings  and  circular  ornaments  around  the 
figures,  &c. ;  see  if  they  are  regular,  smooth,  and  uniform.  When 
there  are  two  medallions  on  a  bill  designed  to  be  alike,  they  are 
exactly  alike,  being  from  the  same  original  die.  This  work  is  done 
by  a  geometrical  lathe,  a  machine  of  immense  cost,  and  which  pro- 
duces fine  and  ornamental  circles  of  such  uniformity  and  exquisite 
perfection  that  it  is  almost  an  impossibility  for  the  counterfeiter  to 
produce  a  good  imitation. 

Examine  the  letters  and  figures ;  see  if  they  are  perfect  in  every 
respect, — all  perfectly  true  and  uniform  and  regular.  In  counter- 
feits the  round  handwriting  is  seldom  well  executed.  Carefully 
study  the  hair-lines  and  curves,  the  shade  or  parallel  ruling  on  the 
face  or  outside  of  the  letters  ;  see  if  they  are  without  breaks  or  flaws, 
and  have  a  finished,  graceful  appearance.  Examine  the  engraver's 
M 


178  NATIONAL   CURRENCY. 

signature  or  imprint ;  see  if  it  is  clearly  and  beautifully  engraved  ; 
if  the  letters  are  all  of  one  size  and  one  slant ;  if  the  distances  apart 
and  the  thickness  of  stroke  are  equal. 

Examine  the  President's  and  Cashier's  signatures.  In  some  coun- 
terfeits the  signatures  are  lithographed /ac-siWZM,  inked  over  with  u 
pen,  which  gives  them  a  stamped  appearance,  the  stroke  a  dead 
color  and  a  rough  edge,  and  sometimes  the  pen  does  not  follow  the 
hair-stroke  curve  correctly  ;  while  the  genuine  signatures,  which 
are  written  with  a  pen,  have  rather  a  glossy  appearance,  and  the 
stroke  a  smooth  edge. 

Bank-notes  altered  by  what  is  termed  the  "pasting  process"  may 
be  detected  by  holding  them  to  the  light,  when  the  parts  pasted  on 
will  be  discovered.  When  the  alteration  has  been  made  by  substi- 
tuting figures  or  letters  for  others  which  have  been  extracted,  the 
denomination  in  the  centre  of  the  note,  when  examined  letter  by 
letter,  will  be  found  to  be  poorly  formed  and  blurred,  and  the 
parallel  lines  irregular  and  imperfect.  The  texture  of  the  paper 
between  the  letters  is  very  often  destroyed, — a  defect  which  may  be 
discovered  by  comparing  the  paper  between  the  letters  with  that 
immediately  above  and  below ;  the  ink  of  the  altered  part  is  also 
sometimes  different  from  the  rest  of  the  jiote. 

Avoid  all  hurry  and  confusion  when  taking  money,  as  much  of 
the  bad  money  passed  is  passed  under  such  circumstances. 

DESCRIPTION  OF  NATIONAL  CURRENCY. 

NATIONAL   BANK-NOTES. 

United  States  and  title  of  bank  ou  each  of  the  different  denomi- 
nations. 

Is. — Two  females  standing  in  front  of  an  altar,  one  of  them  point- 
ing upward.  A  large  1  on  the  left  end,  on  which  is,  "  Secured  by 
Bonds,"  &c. 

Reverse  Side. — Landing  of  Pilgrims,  in  large  oval ;  one,  eagle  in 
shield  ;  oxe,  on  right ;  one,  arms  of  the  State ;  oxe,  on  left  end. 

2s. — Large  2,  extending  almost  across  length  of  note ;  United 
States,  &c.,  on  upper  part,  and  2  on  lower  part,  on  left  end;  female 
seated  holding  American  flag,  on  which  is  a  wreath. 

Reverse  Side. — Sir  Walter  Raleigh  erect,  smoking  pipe ;  six  men 
and  a  boy  grouped  around  him  at  a  table.  2,  eagle  and  shield,  on 
right ;  2,  arms  of  the  State,  on  left  end. 


NATIONAL   CURRENCY.  179 

5s* — Columbus  introducing  America  to  Europe,  Asia,  and  Africa, 
—the  countries  represented  by  female  figures.  Columbus  discover- 
ing America ;  four  men.     6  on  right  end.  Five  on  left  end. 

Reverse  Side. — Landing  of  Columbus  and  men.  Spread  eagle  on 
right;  arms  of  the  State  on  left;  Five  and  5  on  each  end. 

lOs. — Female  seated  on  spread  eagle  in  clouds.  Franklin  draw- 
ing lightning  from  clouds  with  a  kite ;  boy  seated  ;  10  on  right,  ten 
on  left  end. 

Reverse  Side. — De  Soto  on  horseback,  with  his  army,  discovering 
the  Mississippi.  Spread  eagle  ;  arms  of  the  State  ;  10,  10,  on  each 
side. 

20s. — On  right,  allegorical  representation  of  Loyalty ;  figure  of 
Liberty  in  foreground,  bearing  national  flag  ;  farmers,  artisans,  &c., 
rallying  around  the  flag.  On  left,  battle  of  Lexington.  20  on 
each  end. 

Reverse  Side. — Baptism  of  Pocahontas.  Eagle  and  shield ;  arms 
of  the  State  ;  20  on  the  right,  XX  on  left  end. 

50s. — Allegorical  representation  of  Victory :  three  figures  in  a 
cloud ;  soldier  kneeling.  Washington  and  men  in  a  boat  crossing 
the  Delaware.     50  on  each  end. 

Reverse  Side. — Embarkation  of  the  Pilgrims.  Eagle  and  shield ; 
arms  of  the  State ;  50  and  L  on  each  side. 

lOOs. — Female  with  wings,  seated — allegorical  representation — 
maintenance  of  Liberty  and  Nationality.  Men  in  a  row-boat  in 
foreground,  two  vessels  in  background.  100,  C,  on  right  end ;  C,  100, 
on  left  end. 

Reverse  Side. — Signing  Declaration  of  Independence.  Eagle  in  an 
oval ;  arms  of  the  State  ;  100  on  right,  C  on  left  side. 

TREASURY  NOTES,  OR  GREENBACKS. 

Is. — United  States.  A  long  oval  portrait  of  Hon.  S.  P.  Chase 
on  left  end.  A  strip  of  lathe-work  between  signatures.  1  in  green 
and  1  in  fancy  die.  Oval  in  the  lower  centre,  in  which  the  rays  con- 
verge to  the  number  showing  the  denomination  of  the  note,  which 
is  on  a  white  ground. 

2s. — A  side  view  of  Alexander  Hamilton  in  lower  left  centre. 
Two  strips  of  lathe-work.  II  in  green  die  ;  2  on  each  end  in  fancy 
die.     Oval  in  lower  centre,  with  rays  similar  to  the  "ones." 

5s. — Five  Dollars.  5  on  a  strip  of  lathe-work ;  right  end,  male 
portrait ;  5  above  ;  left  end,  female  erect,  with  sword  and  shield. 


180  DUE-BILLS    AND   NOTES. 

lOs. — Upper  centre,  eagle  on  a  shield.  10  in  green  die  each  side. 
Bight  end,  female  erect  by  pedestal,  holding  tablet,  &c. ;  left  end, 
portrait  of  President  Lincoln. 

20s. — Centre,  female  erect,  with  sword  and  shield ;  figure  20  and 
green  die  each  side.  Twkmtt  Dollars  across  each  end  in  green 
die-work. 

60s. — Side  view  of  Alexander  Hamilton  in  oval  die.  Treasury 
die  in  pink  on  right  of  vignette.     50  on  die  on  each  end  of  note. 

lOOs. — Large  spread  eagle  on  a  rock.  100  in  green  die  on  right; 
100  in  black  die  in  right  upper  corner ;  100  in  black  die  in  lower 
left  corner. 

500s. — In  centre,  portrait  of  Albert  Gallatin  in  round  green  die. 
600  on  each  end.  Five  Hundred  Dollars  on  a  strip  of  lathe-work 
below. 

lOOOs. — In  centre,  portrait  of  Robert  Morris  in  green  round  die. 
M,  with  1000  across  it,  on  each  end.  One  Thousand  Dollars  on  a 
green  strip  of  lathe-work  below. 


DUE-BILLS. 

A  Dae-Bill  is  a  simple  acknowledgment  of  a  debt,  in 
writing.  It  is  not  payable  to  order,  nor  is  it  assignable  by 
mere  indorsement.  Bouv.  L.  D.  It  is  subject  to  all  the  off- 
sets and  equitable  rights  between  the  original  parties,  and 
action  must  be  brought  in  the  name  of  the  original  obligee. 
Due-bills  do  not  draw  interest  unless  specified. 

DUE-BILL   FOB   MONEY. 
$125.  Philadelphia,  Juiy  10,  1866. 

Dwe  Henry  W.  Chase,  for  value  received,  One  Hundred  and 
Thventy-Mve  Dollars,  with  interest. 


DUE-BILL   FOR   GOODS. 

Due,  New  York,  August  9th,  1866,  to  H.  Y.  Bennett,  for  value 
received,  Sixty-Five  ■fd'n  Dollars,  in  goods  from  my  store. 

$65-^^js.  Geo.  W.  Hanson. 


PROMISSORY   NOTES.  181 


PRODUCE   NOTES. 

A  Produce  Note  is  a  written  engagement  to  deliver 
specific  articles  to  a  specified  amount.  Like  due-bills,  produce 
notes  are  not  assignable  by  mere  indorsement.  The  maker 
of  the  note  must  be  able  to  prove  that  he  was  ready  at  the 
proper  time  and  place,  and  continued  ready,  to  deliver  the 
articles,  or  he  may  be  compelled  to  pay  their  value  in  money. 

PRODUCE   NOTE. 


^S7^^jf.  Lebanon,  July  2,  1866. 

For  value  received,  we  promise  to  pay  to  Thos.  J.  Stewart,  on  de- 
mand, Thirty-Seven  ^/j  Dollars,  in  goods  at  our  store. 

R.  B,  Fainter  &  Co. 


FORM   OF  ASSIGNMENT   OP   A   PRODUCE   NOTE. 
(2b  be  indorsed  on  the  back  of  the  Note.) 
For  value  received,  I  assign  the  within  Note  to  A.  J.  Gordon, 
without  {or  with)  recourse,  this  17th  day  of  July,  1866. 

Thos.  J.  Stewart. 


PROMISSORY  NOTES. 

A  Promissory  Note  is  a  written  promise  to  pay,  uncon- 
ditionally and  at  all  events,  a  specified  sum  of  money.  Pro- 
missory notes  are  either  negotiable  or  non-negotiable. 

A  note  is  negotiable  when  the  promise  is  made  not  only  to 
the  person  named  in  it,  but  to  his  order  or  bearer,  and  may 
be  collected  by  whomsoever  may  be  the  holder  of  the  note  at 
the  time  of  its  maturity. 

If  a  note  be  made  payable  to  Jas.  G-raham,  or  bearer,  it 
may  be  collected  by  Jas.  Graham,  or  by  any  one  who  may 
hold  or  bear  it,  and  is  negotiable  by  mere  deliver i/. 

16 


182  PROMISSORY  NOTES. 

FORM  OF  NOTE  PAYABLE  TO  BEARER. 

^500.  Portland,  July  S,  1866. 

Three  months  after  date,  I  promise  to  pay  to  James  Graham, 
or  hearer.  Five  Hundred  Dollars,     Value  received. 

Chas.  J.  Eaymond. 

A  note  made  payable  to  James  Graham,  or  order,  may  be 
collected  by  any  one  to  whom  James  Graham  may  order  it  to 
be  paid.  The  order  is  commonly  written  upon  the  back  of 
the  note,  and  is  called  an  indorsement.  If  James  Graham 
simply  wrote  his  name  on  the  back  of  the  note,  it  would  be 
an  indorsement  in  blank,  and  is  equivalent  to  "Pay  to 
bearer,"  and  would  then  be  negotiable  by  delivery.  (See 
Indorsements.) 

note  payable  to  a  person,  or  order. 

^1000.  Troy,  June  29,  1866. 

Thirty  days  after  date,  for  value  received,  we  promise  to 
pay  to  James  Graham,  or  order,  One  Thousand  Dollars. 

J.  B.  Flannigan  &  Co. 

A  note  made  payable  to  James  Graham,  or  James  Graham 
only,  is  not  negotiable,  and  is  payable  only  to  the  party  named. 

NON-NEGOTIABLE   NOTE. 

^300.  Worcester,  June  10,  1866. 

Sixty  days  after  date,  I  promise  to  pay  to  James  Graham 
Three  Hundred  Dollars.     Value  received. 

Henry  J.  Gordon. 

A  custom  prevails  in  the  mercantile  community  of  draw- 
ing notes  payable  to  the  maker's  own  order,  with  his  indorse- 
ment, for  the  purpose  of  facilitating  their  transfer  without 
requiring  the  holder  to  indorse  them. 


PROMISSORY   NOTES.  183 

NOTE   TO    one's   OWN   ORDER. 
^ISOO.  Pittsburgh,  September  20,  1866. 

Four  months  after  date,  I  promise  to  pay  to  the  order 
of  myself  Eighteen  Hundred  Dollars,  without  defalcation.  Value 
received.  Philip  T.  Wharton. 

In  Pennsylvania,  the  words  "  without  defalcation"  must  be 
inserted  in  the  note  in  order  to  render  it  negotiable.  In  New 
Jersey,  '■'■without  defalcation  or  discount;"  in  Missouri,  ^^ne- 
gotiable and  payable  without  defalcation  or  discount;"  in  In- 
diana, the  words  '^without  any  relief  whatever  from  valuation 
or  appraisement  laws"  are  inserted. 

The  words  "value  received"  imply  a  consideration,  which 
is  necessary  to  make  a  promise  binding  on  the  maker  of  it. 

The  person  who  promises  to  pay  is  called  the  promisor, 
maker,  or  drawer;  the  person  to  whom  the  note  is  made 
payable  is  called  i\iQ payee;  the  person  who  writes  his  name 
upon  the  back  of  the  note  is  called  the  indorser;  and  the  per- 
son to  whom  it  is  transferred  by  indorsement  is  called  the 
indorsee. 

All  the  parties  who  have  written  their  names  on  a  note  are 
liable  for  the  amount  due,  but  only  one  satisfaction  can  be 
recovered. 

A  note  given  on  Sunday  is  void;  so  is  a  note  founded  upon 
fraud,  or  when  the  consideration  is  illegal.  Any  material 
alteration  in  a  note — as,  for  instance,  in  the  date,  or  amount, 
or  time  of  payment — discharges  all  parties  who  have  not  con- 
sented to  such  alteration. 

If  a  person  at  the  time  of  taking  a  note  has  notice  that  it 
is  void  through  fraud  or  upon  any  legal  grounds,  he  places 
himself  in  the  position  of  the  payee.  A  note  as  a  gift  is  void 
from  want  of  consideration. 

Notes  made  payable  at  a  fixed  time  are  allowed  three  days 
after  the  expiration  of  the  time  expressed  for  payment. 
These  three  days  are  called  "  days  of  grace." 


184  PROMISSORY   NOTES. 

Demand  for  payment  must  be  made  upon  the  last  day  of 
grace;  or,  if  that  falls  on  Sunday,  or  on  a  leading  holiday, 
such  as  the  Fourth  of  July,  Thanksgiving,  Christmas,  New 
Year,  and,  in  Pennsylvania,  Washington's  Birthday,  demand 
must  be  made  on  the  day  previous. 

If  a  note  is  given  by  a  person  who  cannot  write,  it  is  im- 
portant to  have  a  witness  who  can  testify  to  the  genuineness 
of  his  mark. 

Promissory  notes  do  not  bear  interest  until  after  maturity, 
unless  so  specified. 

If  a  note  is  paid  before  due,  and  afterwards  comes  into 
the  hands  of  a  bona  fide  holder  for  value,  he  can  still  claim 
full  payment  from  the  maker  at  maturity. 

A  note  after  it  is  dishonored  or  over-due  is  not  negotiable, 
but  subject  to  all  the  equities  which  the  maker  may  have 
against  the  original  payee;  and  no  more  can  be  collected  than 
the  original  payee  could  have  recovered. 

A  note  given  by  a  minor  is  voidable  at  the  election  of  the 
minor ;  and,  until  ratified  by  him  after  his  arrival  at  full  age, 
it  is  of  no  efiect. 

If  no  time  is  fixed  for  payment  in  the  note,  it  is  payable 
upon  demand;  if  payable  to  a  fictitious  person,  it  is  payable 
to  bearer. 

If  a  promissory  note,  or  bill  of  exchange,  has  been  lost  or 
destroyed,  payment  must  be  demanded  and  notice  given  as  if 
the  note  was  still  in  possession. 

The  amount  of  a  negotiable  or  non-negotiable  bill  or  note 
which  has  been  destroyed  by  fire  or  other  accident,  may  be 
recovered  upon  sufficient  proof. 

Payment  of  a  non-negotiable  note  which  has  been  lost  may 
be  enforced;  but  if  a  note  or  bill  negotiable  and  transferable 
is  lost,  it  is  held  in  some  States  that  a  suit  at  law  may  be 
maintained  against  the  maker;  in  others,  that  it  cannot;  and, 
again,  in  others,  that  the  holder  may  recover  upon  sufficient 
security  and  indemnity  being  givi  n. 


PROMISSOEY   NOTES.  185 

The  amount  of  a  note  should  always  be  written  out  in 
words ;  it  is  usually  written  in  both  words  and  figures.  When 
the  sum  in  figures  diff'ers  from  that  expressed  in  words,  the 
latter  is  taken  as  the  amount  of  the  note. 

Presentment  for  Payment. — The  presentment  of  a  bill 
of  exchange  or  promissory  note  should  be  made  on  the  day 
of  its  maturity, — that  is,  on  the  last  day  of  grace, — and  not 
be/ore,  and  must  be  made  personally,  either  by  the  holder  or 
his  authorized  agent,  and  cannot  be  made  by  a  written  de- 
mand sent  to  him  through  the  post-office. 

In  order  to  charge  an  indorser,  if  the  bill  or  note  is  pay- 
able at  a  particular  place,  a  bank  for  instance,  it  must  be  pre- 
sented there  for  payment  on  the  very  day  it  becomes  due;  if 
no  place  is  mentioned,  the  demand  must  be  made  at  the 
maker's  place  of  business  during  business  hours,  or  at  his 
dwelling-house  within  reasonable  hours.  If  the  note  is  given 
by  joint  makers,  it  must  be  presented  to  them  all.  In  case 
of  the  death  of  the  maker,  it  should  be  made  to  the  executor 
or  administrator,  if  they  have  been  appointed;  if  not,  at  the 
dwelling-house  of  ^e  deceased.  When  the  maker  has  ab- 
sconded, no  presentation  is  necessary. 

A  Notary,  or  Notary  Public,  is  an  officer  authorized  by 
law,  whose  business  it  is  to  attest  documents  or  writings  of 
any  kind  to  give  them  the  evidence  of  authenticity. 

A  Protest  of  a  promissory  note  or  bill  of  exchange  is  a 
formal  declaration  made  by  a  Notary  Public  under  hand  and 
seal,  at  the  request  of  the  holder  of  a  bill  or  note,  for  non- 
acceptance  or  non-payment.  This  declaration  is  a  protest  to 
the  drawer  and  all  other  parties  to  the  bill  against  any  loss 
which  may  be  sustained  by  the  payee  or  holder.  (See  Bills 
OF  Exchange.) 

It  is  not  necessary,  to  fix  the  liability  of  the  maker  of  a 
note,  that  there  should  be  demand,  protest,  or  notice;  but 
notice  of  non-j)aj/ment,  either  verbal  or  written,  but  well 
authenticated,  to  the  indorse/^  in  necessary  to  hold  him  liable. 

16* 


186  PROMISSORY   NOTES. 

The  notice  should  be  given  on  the  same  day  on  which  the 
note  falls  due,  or  the  next  day  thereafter;  otherwise  the  in- 
dorser  will  be  discharged. 

The  notice  should  state  that  the  bill  or  note  was  duly  pre- 
sented, and  that  payment  was  refused,  and  should  contain  a 
correct  description  of  the  note,  so  that  there  can  be  no  mis- 
take in  regard  to  its  identity ;  it  should  also  contain  a  declara- 
tion that  the  person  to  whom  the  notice  is  sent  will  be  looked 
to  for  payment  and  indemnity. 

It  is  advisable,  when  a  note  is  not  paid  by  three  o'clock 
on  the  day  of  its  maturity,  to  place  it  in  the  hands  of  a 
notary  for  protest,  as  the  protest  is  evidence  that  the  note 
was  properly  presented  for  payment  and  that  payment  was 
refused. 

An  Accommodation  Kote  is  one  for  which  the  maker 
receives  no  consideration,  but  which  he  makes  for  the  purpose 
of  lending  his  credit  to  the  payee  to  enable  him  to  raise 
money.  The  party  for  whom  such  an  accommodation  was 
made,  cannot  recover  from  the  maker;  but  if  it  is  indorsed 
for  value  to  a  third  person,  although  he  may  have  notice  that 
it  is  an  accommodation  note,  and  no  consideration  was  given 
for  it,  that  third  person  can  nevertheless  recover  from  the 
original  maker.  An  accommodation  note  is  drawn  in  the 
ordinary  negotiable  form,  and  is  either  made  payable  to  the 
party  accommodated,  or  passed  by  the  payee  to  the  credit 
of  the  drawer. 

A  Collateral  Xote  is  one  given  with  stocks  or  other  pro- 
perty as  security,  empowering  the  payee  to  sell  if  the  note 
should  not  be  paid  when  it  becomes  due. 

A  Joint  Note  is  one  which  is  written  thus,  "we  promise 
to  pay,"  &c.,  signed  by  two  or  more  persons,  or  written 
"we  promise  to  pay,"  and  signed  "A.  B.,  principal,  H.  T., 
security."  The  words  principal  and  security  only  show  the 
relation  of  the  makers  to  each  other;  they  do  not  affect 
other  parties. 


PROMISSORY  NOTES.  187 

When  a  note  is  written  "  we  jointly  and  severally  promise," 
or  "I  promise,"  &c.,  and  signed  by  two  or  more  persons,  it  is 
a  Joint  and  Several  Note. 

The  promisors  of  a  joint  note  must  be  sued  jointly,  while 
either  promisor  of  a  joint  and  several  note  may  be  sued  alone. 

A  release  of  the  maker,  or  of  one  joint  maker,  by  the 
holder,  is  a  discharge  of  all  the  indorsers. 

If  a  seal  is  added  to  a  promissory  note,  it  is  not  debarred 
or  cut  off  by  the  Statute  of  Limitations,  but  it  then  becomes 
non-negotiable,  and  can  be  transferred  only  by  assignment. 

A  Judgment  Note  differs  from  a  common  promissory 
note  in  having  a  seal  appended,  with  a  power  of  attorney  to 
confess  judgment. 

The  maker,  by  this  power  of  attorney,  authorizes  the  payee 
to  have  judgment  entered,  which  is  a  lien  against  his  lands 
or  estate,  and  authorizes  the  issuing  of  an  execution  without 
resort  to  a  suit  by  the  ordinary  course  of  law. 


An  agent  is  personally  liable  on  the  contract  he  makes,  if 
he  makes  himself  so  expressly,  or  transcends  his  authority, 
(See  Agency.) 

If  an  agent  exceeds  his  authority  in  signing  the  name  of 
his  principal  to  a  note,  the  note  will  be  void  as  to  the  princi- 
pal, even  in  the  hands  of  a  bona  fide  holder.  A  general  author- 
ity to  transact  business,  even  if  it  is  expressed  in  words  of 
very  wide  meaning,  will  not  be  held  to  include  the  power  of 
making  the  principal  a  party  to  negotiable  paper. 

If  an  agent  having  authority  gives  a  note  beginning  "  I  pro- 
mise," &c.,  and  signed  "  A.  for  B.,"  it  has  been  decided  that 
this  is  the  note  of  the  principal,  and  not  of  the  agent. 

If  an  agent  of  an  incorporated  company  makes  a  note  be- 
ginning "I  promise,"  &c.,  and  signs  it  "A.  B.,  agent  for 

Company,"  the  company,  and  not  the  agent,  is  liable  on  the 
note. 


188  PROMISSORY   NOTES. 

FORMS   OF   NEGOTIABLE   NOTES. 

^600.  New  York,  July  17,  1866. 

Three  months  after  date,  I  promise  to  pay  to  George  JT. 
Morehead,  or  order,  at  the  Metropolitan  National  Bank,  Six  Ilun- 
dred  Dollars.    Value  received.  Samuel  H.  Stewart. 


f675.  Philadelphia,  August  8,  1866. 

Sixty  days  after  date,  we  promise  to  pay  to  Edmund  A. 
Soudcr,  or  order.  Six  Hundred  and  Seventy-Five  Dollars,  without 
defalcation.    Value  received.  L.  H.  Burton  &  Co. 


^3500.  Trenton,  N.  J.,  August  9,  1866. 

Thirty  days  after  date,  for  value  received,  I  promise  to  pay 
to  Geo.  L.  Bower,  or  bearer,  Three  Thousand  and  Five  Hundred 
Dollars,  without  defalcation  or  discount, 

Robert  H.  Turner. 


NOTE  WITHOUT  DAYS  OP  GRACE. 

^SoO^jg.  New  Orleans,  April  4,  1867. 

Ten  days  after  date,  without  grace,  I  promise  to  pay  to 
Samuel  G.  Milburn,  or  order.  Two  Hundred  and  Fifty  yViy  Dollars. 
Value  received.  Philip  S.  Chester. 

ONE  FORM   OP  ACCOMMODATION   NOTE. 

^500.  Lancaster,  March  IS,  1867. 

Sixty  days  after  date,  /promise  to  pay  to  the  order  of 
Jo.hn  D.  Laverty  Five  Hundred  Dollars,  at  the  Lancaster  National 
Bank,  without  defalcation.     Value  received. 
Ci-edit  the  di-aner,      )  S.  F.   PoU'ell. 


John  D.  Zaverly. 


NOTE   BEARING   INTEREST. 


$n90.  Albany,  August  16,  1S66. 

Six  months  after  date,  I  promise  to  pay  Charles  Biqua  &  Co., 
or  order,  Two  Hundred  and  Ninety  Dollars,  with  interest.  Value 
received.  John  L.  Brown. 


PROMISSORY   NOTES.  189 

A   JOINT   NOTE. 

Montgomery,  August  11,  1866. 
Three  months  after  date,  we  jointly  promise  to  pay  to  Walter 
L.  Vaughan,  or  order,  Three  Hundred  and  Fifty  Dollars.    Value 
received.  William  H.  Ti-acy, 

^350.  Darwin  L.  Hunter. 

A   JOINT   AND    SEVERAL   NOTE. 

Montpelier,  October  11,  1866. 
Sixty  days  after  date,  we  jointly  and  severally  promise  to  pay  to 
the  order  of  John  B.  Fehhaw  Seven  Hundred  and  Thirty  -^^q 
Dollars,  without  defalcation.     Value  received. 

$7801^%.  Henry  A.  Tyson, 

James  C.  English. 

NON-NEGOTIABLE    NOTE. 

Harvard,  111,  April  9,  1867. 
Thirty  days  after  date,  I  promise  to  pay  to  A.  D.  Groesbeck  One 
Thousand  Dollars.     Value  received. 

-T- Charles  J.  Fisher. 

§1000. 


JUDGMENT    NOTE. 

Sixty  days  after  date,  I  promise  to  pay  to  Augustus  H. 
Robinson,  of  Buffalo,  or  order.  One  Thousand  Dollars,  with  in- 
terest, for  value  received. 

And  further,  /  do  hereby  authorize  any  attorney  of  any  Court  of 
Record  in  Pennsylvania,  or  elsewhere,  to  appear  for  me,  at  any  time 
after  the  above  note  becomes  due  and  remains  unpaid,  and  after  declara- 
tion filed  thereupon,  to  confess  judgment  against  me  for  the  above  sum, 
with  costs  of  suit,  release  of  errors,  Sfc. 

Witness  my  hand  and  seal,  at  Cincinnati,  this  17th  day  of  August, 
in  the  year  one  thousand  eight  hundred  arid  sixty-six. 

Signed,  sealed,  and  delivered 
in  the  presence  of 

Orlando  Barnes,  Joel  F.  Harrison.     [Seal.] 

Henry  F.  Foster. 


190  PROMISSORY  NOTES. 


A  NOTE  PAYABLE  BY  INSTALMENTS. 


^1200.  Ballimore,  September  10,  1866. 

For  value  received,  I  promise  to  pay  to  Charles  M.  PFIA 
liamson,  or  order,  Twelve  Hundred  Dollars,  with  interest,  in  the 
manner  following,  viz.,  Two  Hundred  Dollars  two  months  after 
date,  and  the  balance  in  instalments  of  Two  Hundred  Dollars  each, 
payable  every  two  months  thereafter,  until  the  whole  amount  shall  be 
paid.  James  L.  Bennett. 

FORM   OF   NOTE   USED   BY    MANY   WHOLESALE    HOUSES. 


^/60.  (Philadelphia,  Jday  19,  1^67. 

.:^^aiti  man^A  after  date,  .=^  the  subscriber, 
residing  in  .=Y^^t/^n,  =^S«i^  '^a.,  =^«/«  <^^€)Au^, 
promise  to  pay  to  the  order  of  ^^ttnn,  t=z//i^i«  ^  <^, 
[onj  One  Jiutidred  and  Fifty  Dollurg,  for  value  received,  nego- 
ln"i)\  liable  and  payable  without  defalcation  or  discount,  and 
Inco  I  without  relief  from  any  valuation  or  appraisement  law, 
IffX) '.  with  current  rate  of  exchange  on  Philadelphia,  Pa. 
m\     J^o.gg.    Que  Sept.  191^^.      J^^,^^J^,^^, 


INDIANA   PARTNERSHIP   NOTE. 


^lOO^yj.  Indianapolis,  June  16,  IS64. 

Four  months  after  date,  we,  the  subscribers,  of 
Blue  River,  county  of  Johnson,  State  of  Indiana,  promise  to 
pay  to  the  order  of  Hunter,  Simons  &  Co. 

{without  any  relief  whatntr  from  appraisement  or  valuation  laws,  with  the 
current  rate  of  exchange) 

One  Hundred  jYff  Dollars,  without  defalcation,  for  value 
recfd,  payable  and  negotiable  at  the  State  Bank  of  Indiana. 

Samuel  Hunter,  Humes  &  Linn. 

Alfred  Simons, 

William  Smith. 


PROMISSORY   NOTES. 


191 


192  DRAFTS  AND   BILLS   OF   EXCHANGE. 


DRAFTS   AND  BILLS   OF   EXCHANGE. 

A  Draft  or  Bill  of  Exchange  is  an  order,  or  open  letter 
of  request,  for  a  sum  of  money,  addressed  to  a  person  in  a 
distant  place. 

A  Bill  of  Exchange  must  be  for  the  payment  of  money ^  and 
also  payable  absolutely  at  all  events,  and  must  not  depend 
upon  any  uncertainty  or  contingency. 

When  the  order  is  addressed  to  a  person  residing  in  a 
foreign  state  or  country,  it  is  called  a  Foreign  Bill  of  Ex- 
change. 

When  addressed  to  a  person  residing  in  the  same  State  or 
country  as  the  drawer,  it  is  called  a  Draft,  or  an  Inland  or 
Domestic  Bill  of  Exchange. 

The  different  States  of  the  United  States,  in  law,  are  for- 
eign to  each  other :  so  that  a  bill  drawn  in  Pennsylvania 
upon  a  person  in  Illinois  is  considered  a  foreign  bill. 

There  are,  however,  no  essential  differences  between  foreign 
and  inland  bills,  except  that  the  rights  of  proceeding  and 
remedies  thereon  are  governed  by  different  rules  and  regula- 
tions in  different  countries ;  and  in  the  case  of  foreign  bills, 
when  acceptance  or  payment  is  refused,  a  protest  is  indis- 
pensably necessary.  This  instrument  is  admitted  in  foreign 
countries  as  a  legal  proof  of  the  refusal. 

A  protest  is  not  absolutely  required  to  entitle  the  holder  of 
an  inland  hill  to  recover  from  the  drawer  or  indorser  when 
acceptance  or  payment  has  been  refused.  Due  notice,  how- 
ever, must  be  given  of  the  non-acceptance  or  non-payment. 

Drafts,  or  bills  of  exchange,  are  used  for  safety  in  making 
remittances.  They  are  drawn  payable  to  the  order  of  the 
person  to  whom  sent,  and  are,  therefore,  not  to  be  paid  until 
indorsed  by  him. 

Their  use  avoids  the  expense  and  trouble  of  sending  coin 


DRAFTS   AND    BILLS    OF    EXCHANGE.  103 

or  currency,  aud  as  they  are  left  in  the  hands  of  the  person 
making  the  payments,  they  thus  become  vouchers  to  prove 
that  the  money  has  been  properly  paid. 

Bills  of  Exchange  may  be  made  payable  at  sight,  that  is, 
on  presentation  j  or  a  certain  time  after  sight,  or  on  demand, 
or  a  certain  time  after  date. 

They  are  sometimes  drawn  at  usance,  which  is  the  usual 
time  allowed  by  custom  or  law  in  the  place  where  they  are 
made  payable,  and  varies  from  /ourteen  days  to  three  months. 
The  usance  of  England  is  sixti/  days  after  sight,  with  three 
days  of  grace;  of  France,  thirty  days. 

If  made  payable  in  so  many  days  after  sight,  or  demand, 
they  should  be  presented  for  acceptance,  in  order  to  fix  the 
period  of  payment;  but  if  the  bill  is  payable  on  demand  or  at 
sight,  or  a  certain  number  of  days  after  date,  it  need  not  be 
presented  merely  for  acceptance,  but  only  for  payment.  It  is 
usual,  however,  and  advisable,  to  present  all  bills  except  those 
drawn  payable  at  sight,  or  on  demand,  for  acceptance. 

If  the  bill  contains  the  words  '■^as  per  advice,"  the  drawee 
may  wait  for  further  directions  or  advice ;  and  if  he  accepts 
or  pays  without  doing  so,  he  does  it  at  his  own  peril. 

Bills  of  Exchange  are  usually  collected  through  the  medium 
of  banks  or  bankers,  and,  when  desired  for  the  purpose  of 
making  remittances,  may  be  purchased  from  them,  generally, 
at  a  small  premium  or  discount  on  the  amount  of  the  bill. 

The  person  who  writes  or  draws  the  bill  is  called  the 
drawer.  The  person  to  whom  it  is  addressed  is  called  the 
drawee.  The  person  to  whom  payment  is  made  is  called  the 
payee.  If  the  draicee  agrees  to  pay  the  money  signified  in 
the  bill,  he  does  it  by  writing  his  name  across  the  face  of 
the  bill,  and  is  then  said  to  accept  it,  and  is  called  the  ac- 
ceptor. If  the  person  to  whom  the  bill  is  made  payable 
assigns  it  to  another  person,  he  does  it  by  writing  his  name 
upon  the  back  of  the  bill,  and  is  then  called  the  indorscr. 

Accepting  a  bill  binds  the  acceptor  the  same  as  signing  a 
N  17 


194  DRAFTS   AND    BILLS    OF    EXCHANGE. 

note  of  the  same  tenor.  Every  indorser,  as  well  as  the  ac- 
ceptor, is  security  for  the  bill,  and  if  protested  for  non-accept- 
ance or  non-payment,  they  and  the  drawer  are  liable  to  the 
holder  for  the  principal  sum,  the  interest,  and  the  expense 
incurred  by  the  dishonor, — such  as  cost  of  protest,  broker's 
commission,  and  rate  of  exchange.  Most  of  the  States  of  the 
Union  have  provided  by  statute  a  certain  fixed  sum  or  per- 
centage in  lieu  of  damages  and  re-exchange.  The  parties  to  a 
bill  are  liable  to  the  holder  according  to  the  law  of  the  place 
where  they  entered  into  their  respective  contracts;  the  drawer, 
according  to  the  law  of  the  place  where  the  bill  is  drawn ;  the 
acceptor,  according  to  the  law  of  the  place  of  acceptance ;  and 
the  indorsers,  of  the  place  where  the  indorsements  were  made. 

When  a  person  draws  a  bill  of  exchange,  he  subjects  him- 
self to  the  payment  of  it  should  the  person  on  whom  it  is 
drawn  refuse  cither  to  accept  or  pay,  if  the  holder  of  the  bill 
gives  him  due  notice. 

If  acceptance  is  refused,  or  if  payment  is  not  made  on  the 
day  when  the  bill  becomes  due,  notice  should  be  given,  with- 
out delay,  to  each  party  liable,  that  they  may  be  held. 

The  holder  should  give  notice  to  the  other  parties  to  the 
bill,  if  the  acceptance  is  in  part,  or  qualified,  or  not  in  full, 
if  he  intends  having  recoure^  to  them  in  case  of  non-payment 
when  due.  '  ^ 

The  acceptor,  who  is  the  party  originally  held  bound,  may 
be  allowed  whatever  indulgence  or  delay  the  holder  pleases, 
short  of  the  time  allowed  by  the  statute  of  limitations. 


BILLS    OF    EXCHANGE. 


195 


A  DRAFT  OE  INLAND   BILL  OP   EXCHANGE. 


No.  37. 
Y 

H 

A 


^1000.  gotfetsltr,  |[ob.  24t^,  1865. 

jSt  ffen  (X>ays'  8ig-ht,  'Pay  to  the 

Order  cf CHARLES  McCLINTOCK 

OjrS  aSOTJSjfiJTQ  QOZL:0.Ii8, 

Value  received,  and  charge  to  Recount  of 

To  Duncan  &.  Sherman,  07y  'U^ 

New  York.  U^omai^  tJ^eiiefU. 


ACCEPTED   DRAFT. 


n:^    /-^^^l  Wover,(l)eo.^h,lg6§. 

1'en  (Iiays  §  5  after  Sight,  <Pay  to  the 

Order  of THOMAS  5|w.  MOORE. 

I'vio  Hundred  and ^-^ Fifty jy^(I)ollars, 

Value  received,  whioh'^'^. place  to  jfiacount  of 

To  R.  R.  Robinson  &  Co.  8aj  /^  //      // 

Wilmington,  Del.  ''^  J^ame4  ^yfteiie//. 


Drafts  are  sometimes  accepted  in  the  following  form : — "Accepted 
Apr.  lib,  1867,  payable  at  the  City  National  Bank,  Charles  Ennis." 


FOREIGN   BILLS   OF   EXCHANGE. 

Foreign  Bills  of  Exchange  are  usually  drawn  in  Sets,  called 
the  First,  Second,  and  Third,  etc.  of  Exchange,  all  of  the 
same  tenor  and  date,  and  so  worded  that  when  one  is  paid 
the  others  are  rendered  void.  They  are  sent  by  different 
mails  or  conveyances,  as  a  precaution  against  loss  or  incon- 
venience arising  from  accident  or  miscarriage,  ^la  is  the 
name  given  to  a  single  bill. 


196 


BILLS   or   EXCHANGE. 


FIUST   OF   A   SET   OF   EXCHANGE   ON    LIVERPOOL. 


xctiaitg©  fop  ^'3®@@, 


'gastan,  glpr.  30, 186?. 


At  Sixty  Days'  Sight  of  this   FIRST 
of  Exchange  {Second  4"  JTiird  of  same  tenor  and  date  unpaid) 

|i^  Pay  to  the  Order  of (Bi:<X:EIt  W:0.LXi:it 

—^-^^r^^r^^One  ^Thousand  (Pounds  Bterling--^-^^-^-^^ 
for  Value  received,  and  place  the  same  to  account  of 

To  Brown,  Shipley  &  Co.,     j 
Liverpool,  Eng.  = 


.^^o^  .,^e*^loJ^. 


SECOND   OF    A    SET    OF   EXCHANGE    ON   PARIS. 


[xcEtang©  fep  IQjieO)  Fp.         |ttb  gork,  ^b. J^,  1866. 

At  Sixty  Days'  Sight  of  this  SECOND 
of  Exchange  {First  4"  Third  of  same  tenor  and  date  unpaid) 
Pay  to  the  Order  of JOBJECBJB:  WTLSOJT., 

Ten,  ThoiMsand  1'wo  Hundred  Francs 
for  Value  received,  and  place  the  same  to  account  of 
j^^   To  Delacroix  &.  Co.,  wM  ^^/C 


Par 


<ra. 


THIRD   OF   A    SET    OF   EXCHANGE   ON   FRANKFORT. 


UeEiatig©  f©p  iaQO)  Frerlns.  $pa.,gLpt.4,lS6?. 

At  Sixty  Days'  Sight  of  this  THIRD 
CL     of  Exchange  {Mrst  ^  Second  of  same  tenor  and  date  unpaid) 

Pay  to  the  Order  of J.  j^L^UIiQ:  ajfiJtLjjlJTQ 

.Five  Thousand  Florins^ 


for  Value  received,  and  place  the  same  to  account  of 

To  Grants,  Balfour  &.  Co.,  ^W 
Frankfort.  ^^ 


I 


.mt,^  ^  <^. 


INDORSEMENTS. 


197 


INDORSEMENTS,  ACCEPTANCES,  &c. 

INDORSEMENTS. 

The  word  indorsement  signifies  a  writing  on  the  back  of  a 
bill  or  written  instrument  j  but  it  is  well  settled  that  this  is 
not  essential  in  order  to  charge  a  person  as  an  indorser.  The 
indorsement  may  be  on  any  part  of  the  note,  or  on  a  paper 
annexed  to  it,  and  in  ink  or  pencil ;  but  it  is  better  that  the 
signature  should  be  in  ink,  to  prevent  erasure. 

When  a  note  or  bill  is  drawn  payable  to  a  person  or  his 
order,  it  is  properly  transferable  only  by  indorsement;  nothing 
else,  in  law,  will  hold  the  parties  to  a  note  directly  liable  to 
the  holder. 


1.  INDOBSEMENT  IN  BLANK. 

John  S.  Barton. 

2.  IND0B8EMENT  IN  FULL. 

Pay  to  Jas.  Jones,  or  order. 
John  S.  Barton. 

8.       QUALIFIED    INDOBSEMENT. 

John  S.  Barton, 
Without  recourse. 

i.     BESTRICTIVE    INDOESEMENTS. 

Pay  Robert  Hunter,  for  my  use. 
John  S.  Barton 

Pay  to  Chas.  Harrison  only. 
John  S.  Barton. 


FORMS   OF   INDORSEMENTS. 

5.     CONDITIONAL    INDOBSEMENT. 


Pay  George  Gray,  or  order,  the 
within,  unless  before  due  he  receives 
the  amount  from  my  agent. 

John  S.  Barton. 

6.  INDOBSEMENT    BY   AN   AGENT. 

John  S.  Barton, 
Agent  for  Howard  Chester. 

7.  A    GUAEANTY   ON    A    NOTE. 

For  value  received  in  cash,  1 
hereby  guaranty  the  payment  of 
the  within  Note. 

John  S.  Barton. 


1.  A  blank  indorsement  makes  a  note  transferable  by  mere 
delivery  only,  and  by  it  the  indorser  is  made  liable  for  the 
payment  of  the  note.     If  the  note  or  bill  is  lost  after  such 

17* 


198  INDORSEMENTS. 

blank  indorsement,  any  person  who  should  become  the  holder 
of  it,  in  good  faith,  for  a  valuable  consideration,  without  no- 
tice, would  be  entitled  to  receive  the  amount  thereof. 

2.  Indorsements  in  full  prevent  a  subsequent  holder  from 
recovering  against  the  antecedent  parties,  unless  he  can  de- 
duce a  regular  title  to  the  bill  from  the  person  whose  name 
stands  as  first  indorser. 

If  all  the  subsequent  indorsers  are  in  blank,  the  holder  may 
make  himself  the  immediate  indorsee  of  any  one  of  them,  or 
he  may  deduce  his  title  through  them  all  in  succession. 

If  some  of  the  subsequent  indorsements  are  in  full  and  some 
in  blank,  then  he  must  make  a  regular  deduction  of  title 
through  them  all,  or  make  himself  the  immediate  indorsee, 
under  some  prior  blank  indorsement. 

Persons  taking  a  bill  or  note  subsequently  to  a  blank  in- 
dorsement may  transfer  it,  either  by  delivery  or  by  indorse- 
ment. 

3.  A  qualified  indorsement  is  one  which  affects  the  liability 
of  the  indorser,  but  not  the  negotiability  of  the  note.  If  the 
holder  of  a  note  wishes  to  transfer  it  without  being  held  liable 
for  its  payment,  he  can  do  so  by  writing  his  signature  and 
adding  " without  recourse"  or  other  words  to  that  effect. 

4.  The  holder  who  has  absolute  property  in  a  bill  or  note 
has  the  power  of  limiting  payment  to  whom  he  pleases.  A 
restrictive  indorsement  will  not,  however,  be  presumed  from 
equivocal  language,  as  restrictive  indorsements  tend  to  impair 
the  negotiability  of  bills  and  notes. 

5.  If  the  payee  or  indorsee  of  a  bill  or  note  annexes  a  con- 
dition to  his  indorsement,  before  acceptance,  the  drawee  who 
afterwards  accepts  it  is  bound  by  the  condition.  If  the  terms 
of  the  condition  are  not  complied  with,  the  property  in  the 
bill  reverts  to  the  payee,  and  he  may  recover  the  sum  payable 
in  an  action  against  the  acceptor. 

6.  An  agent  should  expressly  indorse  as  agent,  or  write 
the  name  of  his  principal ;  otherwise  the  indorsement  would 


INDORSEMENTS.  199 

be  inoperative.  When  an  agent  is  compelled  to  Indorse  notes 
or  bills  over  to  his  principal,  to  avoid  responsibility,  he  should 
use  a  restrictive  form  of  indorsement. 

In  Pennsylvania,  a  factor  who  remits  a  bill  to  his  principal, 
in  payment  of  goods  sold  on  his  account,  and  indorses  the 
bill,  does  not  thereby  become  personally  responsible  to  his 
principal,  if  he  receives  no  consideration  for  guaranteeing 
and  does  not  expressly  undertake  to  do  so.  4  Rawle,  384- 
389;  5  ^Yhart.  288. 

An  indorsement  in  the  form  of  A.  B.,  Treasurer  of 

Company,  has  been  held  not  to  render  the  agent  liable  as  an 
indorser,  but  considered  as  intended  only  to  pass  the  paper, 
and  as  equivalent  to  an  indorsement  "  without  recourse." 

7.  An  indorsement  implies  a  contract  to  pay  the  note  if 
dishonored,  if  due  notice  is  given  of  dishonor,  and  not  other- 
wise ;  whereas  a  guaranty  implies  a  contract,  if  due  notice  is 
given  of  dishonor  within  a  reasonable  time. 

The  guaranty  should  contain  words  importing  considera- 
tion, and,  unless  made  expressly  negotiable,  is  good  only  to  him 
who  first  takes  the  note  and  advances  money  upon  it.  If  the 
guaranty  is  upon  a  separate  paper,  it  should  describe  the 
note  with  sufiicient  distinctness. 

If,  upon  proper  presentation,  payment  of  a  note  or  bill  is 
refused,  the  holder  must  give  prompt  notice  of  such  refusal 
to  each  indorser  whom  he  wishes  to  hold  for  payment,  and 
inform  him  that  he  will  be  held  for  the  payment  of  the  same ; 
otherwise  the  indorser  will  be  discharged.  If  the  holder 
could  delay,  he  might  injuriously  affect  the  indorser,  and  his 
remedy  against  other  persons. 

The  holder  of  a  note  or  bill  may  commence  suit,  against 
any  of  the  indorsers,  or  against  all  of  them  at  once. 

When  there  are  several  indorsers,  each  is  liable  to  those 
after  him,  and  should  give  notice  to  all  parties  indorsing  prior 
to  himself. 

Each  indorser  may  require  any  one  whose  name  precedes 


200  ACCEPTANCES. 

his  own  to  make  good  to  him  the  loss  he  may  sustain,  pro- 
vided he  gives  notice  of  his  intention  to  do  so  on  the  day  he 
receives  his  own  notice,  or  the  day  after. 

This  notice  may  be  given  by  any  person  competent  to  serve 
it;  but  a  notary  public  is  usually  employed  for  the  purpose. 


ACCEPTANCES. 

An  Acceptance  is  an  engagement  to  comply  in  whole  or  in 
part  with  the  terms  of  a  bill.  When  the  drawee  engages  to 
pay  according  to  its  terms,  it  is  called  a  general  acceptance  ; 
when  he  agrees  to  pay  with  some  qualification  or  condition 
diflferent  from  the  bill,  it  is  called  a  conditional  or  qxialified 
acceptance. 

When  a  bill  is  presented  for  acceptance,  the  drawee  is  en- 
titled to  twenty-four  hours,  if  he  desires  it,  to  decide  whether 
he  will  accept  it  or  not.  In  New  York  and  Missouri,  if  the 
bill  is  not  returned  within  twenty-four  hours,  it  is  deemed  by 
law  to  be  accepted. 

Acceptances  are  iLSually  written  across  the  face  of  the  bill, 
and,  for  distinctness,  in  red  ink. 

Any  words  not  refusing  its  request,  or  the  signature  of  the 
acceptor  in  blank,  \^  prima  facie  evidence  of  acceptance ;  and 
when  not  otherwise  provided  for  by  law,  the  acceptance  may 
be  either  verbal  or  in  writing, — a  written  acceptance,  of  course, 
being  more  easily  susceptible  of  proof. 

In  New  York  it  is  held  that  no  person  shall  be  charged  as 
an  acceptor  of  a  bill  of  exchange  unless  the  acceptance  be  in 
writing,  and  every  holder  may,  on  presentation  of  the  bill, 
require  that  the  acceptance  be  written  on  the  bill,  and  if  such 
acceptance  is  refused,  the  bill  may  be  protested  for  non- 
acceptance. 

The  holder  may  assent  to  a  qualified  acceptance,  and  it  will 
be  good  as  far  as  it  extends;  but  he  takes  it  at  his  ovra  risk, 
and  he  must  give  notice  to  the  antecedent  parties,  or  they  will 


AGENCY.  201 

not  otherwise  be  held  bound  by  it.  The  condition  of  the 
acceptance  should  appear  upon  the  face  of  the  acceptance  in 
writing,  as  any  subsequent  holder  for  value,  without  notice, 
would  not  be  bound  by  verbal  conditions. 

The  holder  is  not  bound  to  take  any  but  an  unqualified  or 
unconditional  acceptance;  and  when  refused,  if  he  wishes  to 
maintain  a  claim  against  the  other  parties,  he  should  treat  the 
bill  as  dishonored,  unless  they  assent  to  the  proposed  condi- 
tional acceptance.  If  the  holder  declines  the  conditional 
acceptance,  it  will  be  a  waiver  of  all  right  to  hold  the 
drawee. 

Form  of  Conditional  Acceptance  written  across  the  face  of  a  Draft. 

"Accepted  if  in  funds  from  consignment  shipped  us  on  3d 
instant.  Roger  B.  Gray. 

"New  York,  Oct.  17/66." 

AGENCY. 

An  Agent  is  a  person  having  power  to  act  for  another, 
who  is  called  a  principal. 

A  man  may  do  by  his  agent  whatever  he  can  lawfully  do 
himself,  and  his  agent  can  do  for  him. 

A  General  Agent  is  one  appointed  to  transact  all  the  busi- 
ness of  his  principal,  or  all  his  business  of  a  particular  kind. 

A  Special  Agent  is  appointed  for  a  specific  and  particular 
purpose. 

A  Broker  is  an  agent  employed  to  negotiate  between 
other  parties,  and  is  presumed  to  act  in  the  name  of  his 
principal. 

A  Factor  or  Commission  Merchant  is  an  agent  to  sell 
goods  for  his  principal,  but  who  acts  for  several  persons  in 
that  capacity.  He  differs  from  the  broker  in  having  actual 
possession  of  the  goods.  A  Factor  may  buy  and  sell  in  his 
own  name  as  well  as  in  the  name  of  his  principal. 


202  AGENCY. 

An  Attorney  is  an  agent  acting  in  behalf  of  his  client. 

The  authority  of  an  agent  may  be  constituted  in  three 
ways :  by  deed  under  seal,  by  a  writing  without  seal,  or  by 
mere  words. 

The  authority  of  an  agent  may  be  revocable  or  irrevocable. 
It  is  irrevocable  when  an  interest  in  the  subject-matter  is 
conveyed  to  the  agent,  or  the  authority  is  given  for  a 
valuable  consideration;  it  is  revocable  when  no  interest  is 
conveyed,  in  which  case  the  principal  can  revoke  the  author- 
ity at  his  pleasure,  subject  in  some  cases  to  a  claim  for 
damages. 

An  agency  may  be  revoked  by  the  operation  of  law,  by 
expiration  of  time,  by  changes  producing  incapacity  to  act, 
by  the  extinction  of  the  subject-matter  or  its  complete  fulfil- 
ment, or  by  the  death  of  the  principal.  A  power  of  attorney 
to  sell  goods  or  stocks  ceases  with  the  life  of  the  principal, 
and  upon  his  death  may  become  valueless. 

Where  the  conveyance  or  any  act  is  required  to  be  under 
seal,  the  authority  to  execute  it  must  be  under  seal  also. 

Verbal  authority,  ordinarily,  is  sufficient;  but  an  agent 
ought,  for  his  own  security,  to  act  under  written  authority, 
and  to  disclose  his  character  whenever  he  executes  a  con- 
tract. In  signing  his  name,  the  mere  use  of  the  word 
"agent"  is  not  sufficient;  the  name  of  the  principal  must 
also  appear.  Instead  of  writing  "Henry  Grant,  Agent,"  it 
should  be  "  R.  Brown,  per  Henry  Grant;"  or,  "R.  Brown, 
by  his  attorney,  Henry  Grant." 

If  an  agent  does  an  act  or  makes  a  contract  unauthorized 
by  his  principal,  though  in  the  name  of  the  principal,  he  is 
personally  liable;  but  if  the  principal,  with  the  knowledge 
of  all  the  facts,  adopts  or  acquiesces  in  the  acts  done  under 
an  assumed  agency,  he  cannot  afterwards  impeach  them  under 
the  pretence  that  they  were  done  without  authority,  or  even 
contrary  to  instructions.  If  the  principal  does  not  dissent 
and  give  notice  of  it  within  a  reasonable  time  after  being  in- 


POWER    OF   ATTORNEY.  203 

formed  of  what  has  been  done,  his  assent  and  satisfaction 
will  be  presumed. 

"An  agent  is  personally  liable  if  he  makes  himself  so  ex- 
pressly, or  if  he  transcends  his  authority  or  departs  from  its 
terms  and  directions,  or  if  he  conceals  his  character  as  agent, 
or  if  he  purposely  conceals  the  name  of  his  principal,  or, 
perhaps,  if  he  does  not  actually  state  the  name  of  his  prin- 
cipftl." 

It  is  the  duty  of  the  agent  to  follow  implicitly  his  instruc- 
tions, and  to  keep  his  principal  fully  and  promptly  informed 
in  regard  to  the  business  intrusted  to  him. 

An  agent  is  liable  for  interest  if  he  has  made  it  on  the 
money  in  his  hands,  but  not  if  it  has  lain  idle. 

As  a  general  rule,  an  agent  cannot  appoint  a  substitute,  or 
delegate  his  authority  to  another.  But  a  power  of  substitu- 
tion may  be  expressly  given,  or  it  may  be  inferred  from  the 
nature  of  the  act  tO'  be  performed,  or  where  there  is  a  known 
and  established  custom  of  substitution. 


POWER  OF  ATTORNEY. 

A  Power  of  Attorney,  or  Letter  of  Attorney,  is  a  written 
instrument,  usually  under  seal,  by  which  authority  is  given 
to  one  person  to  perform  some  lawful  act  for  another. 

Authority  to  execute  a  deed  must  be  given  under  seal,  and 
be  acknowledged  by  both  husband  and  wife,  and  must  be 
done  in  the  name  of  the  principal. 

Upon  the  death  of  the  principal,  the  authority  delegated 
by  power  of  attorney  ceases,  and  all  subsequent  acts  under  it 
are  void. 

The  authority  intended  to  be  conferred  should  be  expressed 
in  clear  and  intelligible  terms,  and  be  properly  executed, 
attested,  and  acknowledpred. 


204  POWER   OF   ATTORNEY. 

FORM   OF   POWER   OF   ATTORNEY. 

J^nofo  all  P«n  bg  l^cse  ^rtstnts,  That  I, 
of  ,  County  of  ,  and  State 

of  ,  have  made,  constituted,  and  appointed, 

and  by  these  presents  do  make,  constitute,  and  appoint 

,  of  ,  County  of  , 

and  State  of  ,  my  true  and  lawful  attorney, 

for  me,  and  in  my  name,  place,  and  stead,  and  in  my  behalf,  to  (here 
insert  the  things  which  the  attorney  is  to  do) ;  giving  and  granting 
unto  my  said  attorney  full  power  and  authority  generally  to  do  and 
perform  all  and  every  act  and  thing  whatsoever  requisite  or  proper 
to  effectuate  all  or  any  of  the  premises,  with  the  same  powers,  and 
to  all  intents  and  purposes  with  the  same  validity,  as  I,  if  personally 
present,  could  (giving  and  granting,  also,  unto  my  said  attorney 
full  power  to  substitute  one  or  more  attorney  or  attorneys  under 
him  my  said  attorney  in  or  concerning  the  premises,  or  any  part 
thereof,  and  the  same  at  his  pleasure  to  revoke  ;  and)  hereby  ratify- 
ing and  confirming  whatsoever  my  said  attorney  (or  his  substitute 
or  substitutes)  shall  and  may  do  by  virtue  hereof  in  the  premises. 

^It  SSitncSS  h)^£r£of,  I  have  hereunto  set  my  hand  and  affixed 
my  seal,  this  eighteenth  day  of  September,  in  the  year  of  our  Lord 
18 

Signed,  sealed,  and  delivered  [Seal.] 

in  the  presence  of 

Hexrt  E.  Linden, 
Wm.  H.  Moult. 

N.B. — By  omitting  the  words  in  brackets,  no  power  to  appoint  a 
substitute  is  given. 

SHORT   FORM. 

J^nob  all  P^cR  bg  litest  ^rjestnts,  That 

do  make,  constitute,  and  appoint 

true  and  lawful  Attorney     for  and  in  name 

with  power,  also,  an  attorney  or  attorneys  undei  for 

that  purpose  to  make  and  substitute,  and  to  do  ail  lawful  acts  re- 
quisite for  affecting  the  premises;  hereby  ratifying  and  confirm- 


POWER    OF   ATTORNEY.  205 

Ing  all  that  the  said  attorney  or  substitute  or  substitutes  shall  do 
therein  by  virtue  of  these  presents. 

|it  Wdim&&  bj^tttoi,  have  hereunto  set  hand     and 

seal    the  day  of  ,  in  the  year  of  our  Lord 

one  thousand  eight  hundred  and  .  [l.s.] 

Signed,  sealed,  and  delivered 
in  the  presence  of 

POWER   TO   TRANSFER   STOCK. 

^nobs  all  Pen  bg  t^ese  ^rmnls,  That  I,  K.  W.  Y.,  of  Oswego, 
County  of  Oswego,  and  State  of  New  York,  do  make,  constitute,  and 
appoint  Leonard  D.  Gray,  of  the  same  place,  my  true  and  lawful 
attorney,  for  me,  and  in  my  name  and  behalf,  to  sell,  transfer,  and 
assign  unto  Hosea  W.  Hunter,  of  said  Oswego  (or,  any  other  person 
or  persons).  One  Hundred  Shares  in  the  capital  stock  of  the  Syracuse 
National  Bank,  in  Syracuse,  State  of  New  York,  standing  in  my 
name  on  the  books  of  said  corporation  ;  and  to  do  all  necessary  acts 
and  to  make  the  necessary  acquittances  and  discharges  to  effect  the 
premises  (add,  if  desired,  and  1  do  further  empower  him  to  substi- 
tute any  person  or  persons  under  him,  with  like  power) ;  hereby 
ratifying  and  confirming  all  my  said  attorney  (or  his  substitute  or 
Bubstitutes)  shall  lawfully  do  by  virtue  hereof. 

^«  Wiitvitss  in^euof,  &c. 

POWER   TO   RECEIVE  DIVIDEND. 

j^nofa  all  Ptn  bg  tl^ese  ^KS^nts,  That  I,  H.  Y.  Bell,  of  Oswego, 
County  of  Oswego,  State  of  New  York,  do  constitute  and  appoint 
Hiram  Howell,  of  Meridian,  Cayuga  county,  to  receive  from  the 
Cashier  of  the  Oswego  National  Bank  the  dividend  or  dividends 
now  due  me  on  all  stock  standing  to  my  name  on  the  books  of  the 
said  bank,  and  to  receipt  for  the  same ;  hereby  ratifying  and  con- 
firming all  that  by  him  may  lawfully  be  done  by  virtue  hereof  in 
the  premises. 

WiXtntSS  my  hand,  etc. 

Signed  and  delivered  in  presence  of,  &c. 


18 


206  CONTRACTS. 


CONTRACTS. 

A  contract  is  an  agreement,  upon  sufficient  consideration,  to  do, 
or  not  to  do,  some  specified  thing. 

A  consideration  may  be  any  benefit  to  the  party  promiting,  or  tome 
trouble  or  injury  to  the  party  receiving  the  promise. 

In  general,  an  offer  or  proposal  becomes  a  contract  as  soon  as  it 
is  accepted,  and  acceptance  may  be  made  before  the  expiration  of 
the  time  limited,  or  at  any  reasonable  time  before  knowledge  of  a 
retraction  of  the  oflFer. 

In  the  majority  of  the  United  States,  no  action  can  be  brought 
against  a  person  upon  an  agreement  not  to  be  performed  within  one 
year  from  the  making  of  it,  unless  some  note  or  memorandum  of 
the  agreement  be  signed  by  the  party  to  be  charged,  or  his  lawfully 
appointed  agent. 

Persons  under  twenty-one  years  of  age,  married  women,  and  in- 
sane persons,  are  incompetent  to  make  a  contract.  A  minor,  how- 
ever, may  contract  for  necessaries;  so,  also,  may  a  married  woman 
when  her  husband,  without  good  reason,  refuses  to  make  suitable 
provision  for  her. 

The  subject-matter  of  the  contract  must  be  possible;  it  must  also 
be  lawful.  A  contract  founded  upon  fraud,  or  to  do  an  illegal 
or  immoral  act,  is  Toid.  A  contract  in  total  restraint  of  the 
exercise  of  a  man's  trade  or  profession,  would  not  be  enforced  by 
the  courts,  because  it  is  against  public  policy ;  but  a  contract  re- 
straining him  in  any  particular  city  or  place  is  valid. 

Care  bestowed  in  clearly  expressing  the  contract  in  plain  and  un- 
ambiguous language,  may  be  the  means  of  preventing  lawsuits  and 
the  loss  of  friendship  as  well  as  the  loss  of  money.  '*  Three  things 
should  be  attended  to  in  wi'iting  a  contract.  1st.  Weigh  well  your 
■words,  and  ascertain  their  exact  import  or  value.  2d.  Use  enough 
of  them  to  express  all  that  you  mean  or  intend  by  the  contract. 
8d.  Arrange  them  in  such  a  manner  that  they  have  but  one  mean- 
ing, and  that  the  meaning  you  intend." — Hon.  Joel  Jones. 

Verbal  evidence  may  be  admitted  to  explain,  but  not  to  change, 
the  original  contract. 

Contracts  of  fSale. — A  sale  is  a  contract  for  the  transfer  of 
property  for  a  valuable  consideration.     The  subject-matter  and  the 


MERCANTILE   LETTERS.  207 

price  must  be  certain,  or  capable  of  being  made  so,  to  constitute  a 
sale.  The  subject-matter  should  be  perfectly  identified,  ascertained, 
and  designated,  so  as  to  be  distinguished  from  every  thing  else.  In 
the  several  States,  excepting  Louisiana,  no  contract  for  the  sale  of 
any  goods  is  binding,  when  the  price  is  above  a  certain  sum,  unless 
the  buyer  shall  accept  part  of  the  goods  so  sold  and  actually  re- 
ceive the  same  or  give  something  in  part  payment,  or  unless  some 
writing  of  such  bargains  be  made  and  signed  by  the  party  to  be 
charged.  The  sum  required  in  Massachusetts  and  New  York  is 
$50 ;  in  Vermont,  $40 ;  in  Connecticut,  $35 ;  in  New  Hampshire, 
$33.33 ;  and  in  New  Jersey,  $30. 


MERCANTILE   LETTERS. 
1.  Offering  GtOods. 

^^    fed,      ^J.     /S,     /<f^/. 


^enuei 


'€tnen  : 


^ne    me    /wei^u    c/   enc/cdina.     a    ^eto 

^cu  ^eect    anu  c*    mem,   <u^  ana//  /e  AaA/tu  ^    iece^ 
ycui  c-u/u. 


208  MERCANTILE   LETTERS. 

2.  Declining  to  Purchase. 

Messes.  L.  H.  Alwabd  &  Co.,  HnwAnxn,  Norember  1, 186& 

Philadelphia. 
Gentlemen: — We  are  in  receipt  of  your  favor  of  the  30th  ult.,  ami 
have  likewise  received  the  samples  of  Poplins,  but,  having  as  manj 
goods  of  this  description  as  we  require  for  our  present  sales,  we 
must  decline  handing  you  an  order  from  samples  forwarded. 
Respectfully,  yours, 

Chandleb  &  Co. 

3.  Order  for  Goods. 

MsKPHis,  Texv.,  Angnst  10,  ISeOL 
Messrs.  Marshall  &  Howland, 

New  York. 

Gentlemen : — You  will  please  ship  us  at  your  earliest  convenience 

Three  (3)  Half-chests  Imperial  Tea  (Andreas,  ^257),  same  as  in 

last  bill ;  also.  Two  (2)  Half-chests  of  best  Imperial  (Queen  of  th« 

North,  ^9,  or  something  better).    Ship  by  Great  Western  Dispatch, 

and  mark  goods  as  follows : 

J.  M.  Okwio  &  Bro.,  Memphis,  Tenn., 

Care  Gould  &  Linton,  Cincinnati,  Ohio. 

Please  write  across  Bill  of  Lading,  "  Insured  in  consignees'  open 

policy  in  the  Globe  Insurance  Co.  of  Cincinnati,"  and  send  Gould  & 

Linton  the  amount  of  Invoice,  that  they  may  enter  on  our  policy 

book.     Your  early  shipment  will  much  oblige 

Yours,  very  truly, 

J.  M.  Oewio  &  Beo. 

4.  Enclosing  Invoice  and  Bill  of  Lading. 

Per  "  Wyoming."  TaiLUiJS^Bik,  March  17, 1867. 

MsssES.  L.  M.  Seaton  &  Co., 

New  Orleans. 
Dear  Sirs: — We  confirm  our  last  letter  of  12th  inst.,  and  hand 
you  herewith  enclosed  B.  of  L.  and  Invoice  of  Cases  E,  H,  #632 
and  633,  ordered  by  your  Mr.  Carlton,  which  we  have  shipped  this 
day  on  board  Steamer  Wyoming.  Amt.,  $1250.^%;  due  June  17th. 
Should  you  need  any  of  our  qualities  of  Cassimeres,  v?e  shall  b« 
pleased  to  fill  your  orders  on  the  best  terms  possible. 

Yours,  truly, 

Wells,  Fisk  &  Co. 


MERCANTILE   LETTERS.  209 

5.  Advising  Receipt  op  Invoice. 

Me  Jambs  L.  Kino,  Boston.  St.  Louis,  April  5, 1867. 

Dear  Sir: 

Your  favor  of  March  29th,  with  B.  of  L. 
and  Invoice,  was  received  in  due  time.  The  goods  are  all  that  we 
desired;  and  for  your  promptness  and  care  in  filling  our  order, 
accept  our  thanks. 

Enclosed  find  in  payment  Holmes  &  Bros.'  Draft  on  First  National 
Bank  of  Boston,  at  sight,  for  ^ISTS-^^j.  Please  acknowledge 
receipt  per  return  mail,  and  oblige 

Yours,  respectfully, 

Thos.  L.  Smith  &  Co. 

6.  Consigning  Goods  to  be  sold  on  Commission. 
Messrs.  Samuel  G.  Porter  &  Co.,  CraoisfNATi,  May  u,  1867. 

Hew  York. 
Dear  Sirs : — Your  favor  of  7th  inst.  is  at  hand.  We.  enclose  you 
Invoice  and  Bill  of  Lading  of  100  bbls.  Mess  Pork  and  50  firkins  of 
Butter,  shipped  this  day  per  Merchants'  Line,  to  be  sold  for  our  ac- 
count, as  per  agreement.  We  request  you  not  to  sell  for  less  than 
Invoice  price,  and  if  you  succeed  in  disposing  of  this  lot  satisfac- 
torily, you  may  be  almost  sure  of  receiving  further  consignments 
from,  us.  We  have  drawn  on  you  at  ten  days'  sight,  through  Phoenix 
Bank,  for  One  Thousand  Dollars.  Awaiting  your  advices,  and 
hoping  soon  to  hear  from  you,  we  remain. 

Very  truly,  yours, 

M.  Johnson  &  Co. 


7.  Enclosing  Account  Sales. 

Messrs.  M.  Johnson  &  Co.,  New  Toek,  June  10, 1867. 

Cincinnati. 
Dear  Sirs : — Enclosed  we  send  you  Account  Sales  of  Pork  and 
Butter  shipped  us  on  May  11th.     The  Net  Proceeds,  $1750.62,  due 
per  average  July  2d,  we  have  placed  to  the  credit  of  your  account; 
the  result,  we  hope,  will  be  satisfactory. 

We  shall  be  pleased  to  receive  further  consignments  from  you,  and 
will  endeavor  to  dispose  of  them  on  the  most  advantageous  terms. 
Thanking  you  for  past  favors,  we  remain, 

Truly,  yours, 

Samuel  G.  Porter  &  Co. 
0  18* 


210  mercantile  letters. 

8.  Enclosing  Account  Current. 

Mr.  Henry  T.  Morris,  Baxduskt,  C,  Jan.  1, 18W. 

Nebraska  City. 

Dear  Sir: 

We  respectfully  call  your  attention  to  the 
enclosed  Account  Current,  with   interest  calculated  to   this  date, 
showing  a  balance  in  our  favor  of  $3275.^"^.     If  you  find  correct, 
please  remit  us  a  Draft  at  sight  for  the  amount,  and  oblige 
Yours,  respectfully, 

D.    BiTKDKL   &   Co. 


9.  Enclosing  Remittance. 

Messrs.  J.  T.  Anthony  &  Co.,  Satatoah,  January  21,  IMT. 

Manchester,  Eng. 

Gentlemen: 

Your  favor  of  2d  inst.,  covering 
statement  of  account,  is  at  hand,  and  upon  examination  we  find  it 
correct.  Enclosed  please  find  Richardson  &  Cowden's  1st  and  2d 
of  Exchange  on  Brown,  Shipley  &  Co.  for  Two  Hundred  and  Sixty 
Pounds  7/5,  in  settlement  of  account  to  1st  inst. 
Please  acknowledge  receipt,  and  oblige 

Yours,  very  truly, 

B.  F.  MooRB  &  Co. 


per  D.  B.  Mabiin. 


10.  Another. 


Messrs.  A.  L.  Watson  &  Co.,  Teihtok,  Apni  lo,  isw. 

Philadelphia. 
Dear  Sirs : 

Enclosed  find  my  Check  on  First  National  Bank  of  this 
city  for  Twenty-Two  Hundred  and  Fifty  Dollars,  in  payment  of 
Bills  of 

July  21    ....     1262.10 

«'    25       .         .         .  872.00 

««    28   .         .         .         .       115.90 

$2250.00 

Please  acknowledge  receipt,  and  oblige 

Yours,  respectfully, 

Jahss  ANoaasoir. 


mercantile  letters,  211 

11.  Acknowledging  Remittance. 

Buffalo,  Jan.  12, 1867. 
Received  from  Messrs.  George  H.  Jackson  &  Co.,  Five  Hundred 
and  Fifty  y^^'^  Dollars  on  account. 
$550.  ^g%.  H.  D.  Climton  &  Co. 

Messrs.  Gsobqe  H.  Jackson  &  Co.,  Bwpalo,  Jan.  12, 1867. 

Utica,  N.  Y. 
Gentlemen: — Above  please  find  receipt  for  remittance  contained  in 
yours  of  10th  inst.,  for  which  we  are  obliged.  We  find  in  your  state- 
ment a  variation  in  two  items,  those  of  December  6th  and  19th.  Can 
you  favor  us  with  an  explanation,  as  we  have  no  credits  reducing 
the  amount  of  $35  to  $25.x*oV  or  ^Qlb.^^-^  to  $654.-^? 
Waiting  your  reply,  we  remain. 

Respectfully,  yours, 

H.  D.  Clinton  &  Co. 


12.  Another. 

Messes.  Thos.  M.  Totjnq  &  Co.,  Aibaitt, Not. is,  186«. 

Syracuse. 
Gentlemen: — ^We  have  the  pleasure  to  acknowledge  the  receipt  of 
your  esteemed  favor  of  10th  inst.,  containing  your  Notes  dated 
Sept.    1,  at  3  mos.,  for  425.66, 
««      15,       "  "    425.66, 

Oct.      1,       ««  "    425.67, 

Amounting  to  Twelve  Hundred  and  Seventy-Six  ^'^  Dollars,  which 
we  have  placed  to  your  credit  in  settlement  of  your  account. 

Please  accept  our  thanks,  and,  requesting  the  favor  of  your 
future  orders,  we  remain, 

Very  truly,  yours, 

Chas.  L.  Riqita  &  Co. 

13.  Asking  for  Settlement. 

Mb.  Henbt  Q.  Sandebs,  Woecestik,  May  26, 1887. 

Concord. 
Dear  Sir : — We  respectfully  call  your  attention  to  our  statement 
of  account  rendered  April  3d,  a  settlement  of  which  at  your  earliest 
convenience  will  much  oblige 

Yours,  very  respectfully, 

HOBACX  BOTS  &  Co. 


212  MERCANTILE   LETTERS. 

14.  Another. 

Me.  H.  Y.  Henderson,  Wilmd(oton,  April  6, 1867. 

Dover,  Del. 
Dear  Sir: 

Enclosed  please  find  our  usual  monthly  statement,  amount- 
ing to  $37o.^jj'j,  for  which,  if  found  correct,  we  shall  be  pleased  to 
receive  remittance  by  30th  inst. 

Should  we  receive  no  remittance  by  that  time,  we  propose  to 
draw  on  you  at  sight  for  the  amount,  unless  in  the  mean  time  we 
are  otherwise  advised. 

Fours,  respectfully, 

Jaues  S.  Smith  &  Co. 


15.  Advising  op  Draft. 

Me.  H.  T.  Hawkins,  Ci-iviLAin),  June  3, 1867. 

Harvard.  III. 
Dear  Sir: 

As  we  are  in  want  of  funds,  we  take  the  liberty  of  draw- 
ing on  you  at  5  days'  sight  for  bills  of 

Jan.  10th,  $575.00 

Feb.  12th,  300.00 

$875.00 
which  please  protect,  and  much  oblige 

Yours,  truly, 

BeOWK   &  WOBTHINOTOM. 


16.  Enclosing  Notes  for  Collection. 

Cashieb  Fiest  Nationai  Bank,  Philadelphia,  July  29, 1866. 

Cincinnati. 

Dear  Sir : — Enclosed  find  for  collection. 

Note  J.  Smith,  due  Aug.  3/6,  810.20 

«'     J.  Jones,     "       "     8/11,  600.00 

Acceptance  Morton  &  Co.,  due  Aug.  10/13,     920.62 

$2320.82 
If  paid,  please  remit  Draft  for  proceeds. 

Yours,  very  respectfully, 

Geobqe  V.   MaU9. 


INSTALMENT   RECEIPT. 
INSTALMENT   RECEIPT. 


213 


WASHINGTON  R.  R.  COMPANY. 

Received,  Washington,  j2pr.  11th,  1S67,  of  8.  J.  jfindrews, 
Q/wo  Q^housand  Five  JIundred  Qollars,  being  Twenty-Five 
Dollars  per  share,  and  the  Q!hird  Instalment  on  Q!wo  hun- 
dred Shares  of  the  Capital  Stock  of  the  WASHISaTON  RAIt4R0AO 
COMPANY ;  for  which  said  shares  a  full  Certificate  will  be  given 
upon  payment  of  all  instalments  due  thereon,  and  the  surrender  of 
this  Certificate. 

Secretary.  ^•esidenl. 


Copy  of  an  Exchequer  Bill  issued  in  the  reign  of  Queen  Anne. 
£l2  \QS.  "EXCHEQUER. 

A  28/24.  Purfuant  to  an  Act  of  Parliament,  Anno  1709,  for  enlarging 
the  Capital  Stock  of  the  Bank  of  England,  &c.  This  Bill  entitles  the 
bearer  to  twelve  pounds,  ten  fhillings,  with  intereft  at  a  farthing  a  day. 
To  be  received  in  all  aids,  taxes,  loans,  and  payments  whatfoever  to  Her 
Majefty,  and  to  be  paid  to  the  bearer  by  the  Governor  and  Company  of  the 
Bank  of  England,  from  time  to  time,  as  the  fame  shall  be  paid  into  the 
exchequer  by  any  receivers  or  collectors  of  Her  Majefty's  revenue,  aids, 
taxes  or  fupplies ;  and  be  thence  reiffued  and  at  all  times  by  fuch  receivers 
Of  collectors  out  of  any  public  money  in  any  of  their  hands,  as  directed  by 
the  faid  Act." 

BANK   DEPOSIT   TICKET. 

Deposited,      April  8th,  1867,      at  the 
MECHANICS'  NATIONAL   BANK. 
By  ^wum,  0StU/^t  ^  ^o. 


Bank  Notes,  S's  and  upwards. 

"         "      1'b  and  2'8 

SPEai 

Chicks,  aa  foUowi 


DoIIarg. 

Cts. 

675 

00 

25 

00 

60 

00 

325 

75 

466 

60 

$1541 


.14 


CERTIFICATE    OF  STOCK. 


09$  Sa'JX'^HS^I^ 


*m*mm»«9fMt9  ct  cxa  a  h  ii  ii  ii  m  ii  ii  ixKMKKt*** 


CERTIFICATE    OF    SCRIP   DIVIDEND. 


215 


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g^O  000:00  THE  OCEANIC  INSURANCE  COMPANY.   6  OOP  CO  6 

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UNIVERSITY  OF  CALIFORNIA,  LOS   ANGELLS 

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